Brent crude drops to $83.86 as US‑Iran talks ease Middle East oil fears
Brent crude fell to $83.86 per barrel on Monday, extending a sell‑off that erased most of the gains made after the July‑23 rally to $100.30. WTI crude slipped to $80.23, down from $91.70, as US President Donald Trump announced new talks with Iran set for Monday afternoon after calling off a planned military strike. Trump said he was prioritising negotiations over military action, a move welcomed by regional allies who warned that a broader conflict could disrupt shipping through the Strait of Hormuz, through which about a fifth of global oil trade passes. Iranian Foreign Minister Abbas Araghchi said negotiations with Oman were in their final stages, though it remained unclear whether the talks would directly reopen the strait.
The price drop comes despite Nigerian petrol prices having surged to as high as N1,300 per litre from N770–N800 before the hostilities, pushing up transport costs and inflation. Yet crude remains well above Nigeria’s 2026 budget benchmark of $64.85 per barrel, offering a potential boost to government oil revenues if prices stay elevated. OPEC+ has also approved a 188,000‑barrel‑per‑day output increase for September, adding further downward pressure on crude if diplomacy holds.
Will you adjust your travel or fuel budget now that pump prices may ease, or wait to see if the diplomatic push keeps crude prices—and consequently fuel costs—on a downward trend?