Crude oil prices cooled slightly on Tuesday, trading around $88 per barrel, as reports emerged of potential ceasefire talks between the United States and Iran. This follows a sharp rally that pushed prices toward the $90 mark earlier in the week, driven by intensifying geopolitical tensions and disrupted shipping through the Strait of Hormuz.

While market participants are cautiously optimistic about a diplomatic de-escalation, the region remains volatile. Continued military activity and concerns over the security of critical oil transit routes have kept investors on edge. For Nigeria, sustained oil prices well above the government’s budget benchmark of $64.85 per barrel remain a positive for fiscal revenue and foreign exchange inflows, though experts warn of potential inflationary risks from higher global fuel costs.