Global oil prices declined sharply on Thursday, falling by around $3 per barrel as markets reacted to growing expectations of a possible easing in Middle East tensions.
The drop followed reports of a ceasefire agreement between Israel and Lebanon, which sparked optimism that broader diplomatic negotiations involving the United States and Iran could reduce risks in the region, including concerns around the Strait of Hormuz.
Brent crude fell by $3.20 (3.27%) to $94.61 per barrel, while West Texas Intermediate dropped $3.71 (3.86%) to $92.31. The decline came after prices had risen the previous day due to renewed geopolitical tensions.
Iran has reportedly linked any potential agreement to an end to hostilities involving Israel and Hezbollah, while investors continue to watch developments closely for signs of stability in global supply routes.
In the United States, lawmakers in the House of Representatives passed a resolution seeking to limit former President Donald Trump’s ability to carry out military action against Iran, though the measure still faces major hurdles in the Senate.
Meanwhile, Russia reported a decline in oil production linked to unplanned refinery maintenance, marking an official acknowledgment of reduced output since the start of the year.
U.S. crude inventories also fell sharply by 8 million barrels, according to government data, far exceeding market expectations and adding further volatility to the energy market.
In Nigeria, the Nigerian National Petroleum Company Limited posted a more than 70% increase in revenue and profit, while the Dangote refinery recorded strong gains from fuel exports. However, domestic fuel price pressures continue to impact consumers and contribute to rising inflation.
