Crude oil prices plunged sharply below $95 per barrel in early trading on Wednesday following a ceasefire agreement between the United States and Iran.

The global oil benchmark fell by about 13% to around $94–$95 per barrel, marking one of the steepest single-day declines in recent years after weeks of war-driven price spikes. 

The dramatic selloff came after U.S. President Donald Trump announced a conditional two-week ceasefire, pausing military operations in exchange for the reopening of the Strait of Hormuz—a critical route for global oil shipments.

West Texas Intermediate (WTI), the U.S. benchmark, also dropped significantly to around $95–$96 per barrel, reflecting a broad easing of geopolitical tensions and a rapid unwinding of the war risk premium in oil markets. 

Earlier, crude prices had surged above $110 per barrel amid fears of supply disruptions as tensions escalated in the Middle East.

However, the ceasefire has restored some confidence that oil flows will resume, triggering a sharp correction in prices.

Despite the decline, analysts caution that oil markets remain volatile, with prices still above pre-conflict levels and uncertainty surrounding the durability of the truce.

In Nigeria, many people expect reduction in fuel prices which have doubled since the start of the war.

The World Bank on Tuesday said fuel prices have risen by more than 50 per cent since the outbreak of the Iran conflict, intensifying inflationary pressures and raising concerns over household welfare.

Speaking at the Nigeria Development Update (NDU) presentation in Abuja, the World Bank’s Lead Economist for Nigeria, Fiseha Haile, noted that while economic activity remains resilient, the surge in energy costs is feeding into broader price increases.

“Overall business activity has been expanding over the past few months, suggesting the impact on growth has been relatively contained.

But the shock is still being felt through higher inflation,” Haile said.