Business
Oil prices tumble as US, Iran reach peace deal
Global crude oil prices recorded a steep decline on Monday following a peace agreement between the United States and Iran, bringing an end to more than two months of hostilities that disrupted global energy markets and fuelled inflationary pressures across several economies.
Brent crude, the international benchmark for oil, dropped by nearly four per cent to trade at $79.50 per barrel as of 9:54 a.m. Nigerian time.
An analysis of market data showed that Brent crude, which opened at $80.24 per barrel on Sunday, climbed briefly to about $81 before declining steadily to $79.39, its lowest level within the last 24 hours.
The sharp decline followed Sunday’s announcement by Washington and Tehran that they had agreed to end the conflict between the two countries.
The agreement also effectively halted the war between Israel and Iran and brought an end to Israeli military operations in Lebanon.
The peace deal, reportedly brokered by Pakistan alongside several Middle Eastern countries, paves the way for the full reopening of the Strait of Hormuz, one of the world’s most strategic oil transit routes through which roughly 20 per cent of global crude oil supplies are transported.
The strait had remained closed since the outbreak of hostilities on 28 February, when the United States and Israel launched military operations against Iran.
The disruption triggered significant volatility in global oil markets, pushing Brent crude above the $100-per-barrel threshold and driving energy costs to multi-year highs.
The surge in crude prices led to corresponding increases in the prices of refined petroleum products, including petrol, diesel and aviation fuel, across several countries.
In Nigeria, the spike in international oil prices translated into higher domestic fuel costs, triggering concerns among consumers, transport operators and businesses already grappling with rising living expenses.
As global crude prices fluctuated during the crisis, Dangote Refinery adjusted its ex-depot prices several times to reflect changing market conditions.
READ ALSO: US, Iran agree on deal to end war
Petrol, which sold for about N870 per litre before tensions escalated in the Middle East, now retails for approximately N1,350 per litre or higher in many major Nigerian cities.
The increase in fuel prices contributed to higher transportation fares and pushed up the cost of food, goods and services across the country.
The crisis also prompted governments around the world to introduce measures aimed at shielding their economies and citizens from the impact of rising energy costs.
With the conflict now officially ended and the Strait of Hormuz reopened, analysts expect global oil prices to moderate further in the coming weeks.
A sustained decline in crude prices could eventually translate into lower petrol prices and reduced energy costs in Nigeria and other oil-importing economies.
An Aero Contractors flight travelling from Lagos to Abuja on Saturday morning returned to its departure airport after the crew reported a technical issue while the aircraft was airborne.
The aircraft, which departed Lagos at about 7:30 a.m., had travelled part of the route mid air before the flight crew decided to discontinue the journey and return to Lagos as a precautionary safety measure.
Passengers were safely evacuated after the aircraft landed, and no injuries were reported.
A passenger aboard the flight told PREMIUM TIMES that the cabin became unusually hot while the aircraft was in the air, causing anxiety among passengers.
According to the passenger, the crew informed those on board that the aircraft had developed a technical problem and would return to Lagos but did not disclose the exact nature of the fault.
“There was a lot of panic because people did not know exactly what had happened. We were only told there was a technical problem and that we had to return to Lagos,” the passenger said.
As of 10:10 a.m., the affected passengers had begun boarding another Aero Contractors aircraft to continue their journey to Abuja, according to one of the passengers who spoke with PREMIUM TIMES.
PREMIUM TIMES contacted Aero Contractors for comments on the incident, including the nature of the reported technical issue, the reason for the aircraft’s return to Lagos and the arrangements made for affected passengers.
However, the airline had yet to respond as of the time this report was filed.
Recent incidents
Saturday’s occurrence comes about two months after a Max Air flight from Abuja to Katsina made an emergency return to the Nnamdi Azikiwe International Airport shortly after take-off following a reported technical fault.
As previously reported by PREMIUM TIMES, passengers on the May 2026 flight recounted hearing loud banging sounds from the aircraft before it reportedly lost altitude briefly and struggled to stabilise, prompting the pilot to return to Abuja as a safety precaution. The aircraft landed safely, and no injuries were reported.
READ ALSO: Benin runway excursion not crash or emergency landing Enugu Air CEO
The Aero Contractors incident also comes amid increased public attention to airline operations following Thursday’s runway excursion involving an Enugu Air Embraer E170 at Benin Airport.
Although all 63 passengers and five crew members escaped unhurt, the occurrence disrupted flight operations after the runway was temporarily closed, forcing Air Peace and United Nigeria Airlines to suspend flights to and from Benin while aircraft recovery and safety assessments were carried out.
While the circumstances surrounding the Aero Contractors, Max Air and Enugu Air incidents differ, they have renewed attention on operational reliability and safety across Nigeria’s aviation sector.
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