Brent crude falls to $118.30 per barrel while WTI drops below $100 as renewed negotiations involving Iranian and Qatari officials ease fears of further supply disruptions across the Middle East…..
Global crude oil prices tumbled by more than four per cent on Monday as growing hopes of a diplomatic breakthrough in the US-Israeli war on Iran eased concerns about prolonged disruptions to international oil supplies.
Brent crude, the international benchmark, fell by 4.5 per cent to $118.30 per barrel, while US West Texas Intermediate (WTI) declined by 4.37 per cent to $99.57 per barrel.
The sharp decline followed a third consecutive day of diplomatic engagements involving Iranian and Qatari officials, as efforts intensified to find a negotiated end to the conflict that has unsettled global energy markets.
The war has heightened concerns over the security of crude oil production facilities and critical shipping routes across the Middle East, particularly the Strait of Hormuz, through which a significant share of global oil supplies passes.
The latest price movement suggests that investors are beginning to factor in the possibility that diplomatic efforts could prevent another escalation and ease the threat of prolonged supply disruptions.
Iran Negotiations Raise Hopes Of De-escalation
Iranian Foreign Minister Abbas Araqchi said on Sunday that the ongoing discussions with Qatari officials were intended to sustain consultations aimed at resolving the crisis.
Describing the diplomatic engagements as “ongoing and progressing”, Araqchi maintained that Tehran remained prepared for both military defence and diplomatic negotiations.
The renewed push for dialogue has also received backing from Washington, with United States President Donald Trump reportedly favouring negotiations over another round of military action.
According to Axios, Trump told Israeli Prime Minister Benjamin Netanyahu that he wanted to give diplomatic efforts an opportunity to produce results before considering further military action.
US Secretary of State Marco Rubio also indicated on Saturday that the administration had not made any decision on launching fresh attacks, adding that Trump preferred a diplomatic solution to the conflict.
The developments have helped ease market fears of an immediate escalation, although attacks on vessels around the Strait of Hormuz continue to pose risks to international energy transportation.
Monday’s decline comes after a significant rally in crude oil prices throughout October, when escalating hostilities involving the United States, Israel and Iran heightened fears of a major disruption to global petroleum supplies.
On October 30, Brent crude was trading at $117.30 per barrel, representing a daily increase of 2.14 per cent, while US WTI gained $1.85 to reach $103.80 per barrel, according to Nairametrics’ market checks at the time.
The October rally was largely supported by concerns over attacks on energy infrastructure and the potential disruption of strategic shipping routes across the region.
Market anxiety was further heightened by renewed attacks claimed by Yemen’s Houthi movement against Saudi Arabia’s energy infrastructure.
The group’s spokesperson, Yahya Saree, announced on X that the movement had targeted several strategic facilities, adding another layer of uncertainty to the region’s already fragile security situation.
With the Middle East accounting for a significant share of global crude oil production and exports, continued hostilities have kept traders focused on developments surrounding the conflict and the possibility of further supply interruptions.
The latest decline in international crude oil prices could offer some relief to energy-importing economies if the downward trend continues. However, the immediate impact on petrol prices, transportation costs and electricity generation remains uncertain.
Higher crude oil prices generally increase the cost of petroleum products and can put additional pressure on transportation, manufacturing and electricity generation, particularly in economies heavily exposed to imported energy.
Nigeria has also continued to experience pressure from rising energy costs. Data from the National Bureau of Statistics (NBS) showed that energy inflation increased to 10.85 per cent year-on-year in September 2026, compared with 4.69 per cent in August.
The development highlights the continuing burden of energy-related expenses on households and businesses despite efforts by governments to manage domestic supply and pricing pressures.
In October 2026, Niger Republic banned petrol and diesel exports in a move to prioritise domestic consumption and strengthen local fuel availability.
However, the restriction allows specially authorised exports of surplus supplies by state-owned SONIDEP and refinery operator SORAZ.
The decision reflects growing concerns among governments about securing adequate domestic petroleum supplies amid volatility in international energy markets.
Meanwhile, a September 2026 policy brief by the United Nations Development Programme (UNDP) projected that global fossil fuel subsidies could exceed $1 trillion in 2026 as governments seek to cushion households and businesses against rising energy costs.
For oil-producing countries such as Nigeria, sustained weakness in crude prices could also have implications for export earnings and government revenue, particularly if the decline persists.
Although Monday’s market reaction reflects renewed optimism over diplomatic negotiations, the direction of crude oil prices will largely depend on whether the engagements produce a lasting resolution and restore confidence in the security of Middle Eastern oil supplies.
