Global oil prices retreated from a five-month high on Tuesday as renewed diplomatic engagements between Iran and Pakistan raised hopes of easing tensions in the Middle East, despite continued attacks on energy infrastructure across the region.
Checks by Nairametrics showed that Brent crude futures declined by 0.76% to $108.72 per barrel, while US West Texas Intermediate (WTI) crude for November delivery fell by 0.68% to $102.96 per barrel as of 12:31 p.m. EDT.
The decline followed an earlier rally that pushed Brent crude to $111.90 per barrel, its highest level in five months, while WTI briefly reached $110.48, its highest level for a nearby contract since April.
Brent crude retreats below $109
Iranian President Masoud Pezeshkian held talks with Pakistan’s army chief, Field Marshal Asim Munir, in Tehran on Tuesday, focusing on diplomatic efforts to resolve the ongoing conflict involving Iran and the United States.
According to Iran’s Nournews, the discussions centred on Pakistan’s mediation efforts and broader regional security developments.
- Pakistan previously brokered an interim peace agreement in June, although the arrangement collapsed following renewed hostilities between Iran and the United States.
- The latest engagement comes amid continued attacks by Yemen’s Houthi rebels, who claimed responsibility for strikes targeting Saudi oil facilities, airports and military installations.
- Energy analysts at ING noted that persistent geopolitical uncertainty continues to support oil prices, with traders factoring potential supply disruptions into market valuations.
- The renewed diplomatic engagement comes as global oil markets continue to respond to developments in the Middle East, with supply concerns remaining a key influence on crude prices.
Despite the latest decline, Brent and WTI continued to trade above $100 per barrel, reflecting the uncertainty surrounding regional security and energy supplies.
Middle East tensions fuel oil volatility
The latest decline comes just four days after Nairametrics reported that Brent crude climbed to $110 per barrel on Friday, marking its first return to that level since May.
- The rally was driven by renewed concerns over global energy supplies following attacks on critical infrastructure in the Middle East and disruptions linked to the Russia-Ukraine conflict.
- Houthi attacks targeting Saudi energy facilities heightened fears of prolonged disruptions to oil supplies across the Middle East.
- Strikes on Russian and Ukrainian oil infrastructure also contributed to concerns about the stability of global energy supplies.
Despite Tuesday’s retreat, oil prices remained above $100 per barrel as geopolitical tensions continued to influence market sentiment.
The continued attacks on energy infrastructure have kept supply risks in focus, even as diplomatic discussions involving Iran and Pakistan raised hopes of easing regional tensions.
The latest price movement follows a period of sharp gains in crude oil benchmarks, with Brent reaching a five-month high before retreating.
The combination of diplomatic efforts and continuing infrastructure attacks highlights the uncertainty affecting global oil prices.
Rising fuel prices pressure Nigerian consumers
The persistent volatility in global crude oil prices has implications for Nigeria, where fluctuations in petroleum product prices are increasingly affecting transportation costs and household spending.
- Nairametrics observed that frequent petrol price adjustments have contributed to unstable transport fares across several parts of Lagos, with commuters facing changing costs on major routes.
- Checks by Nairametrics showed that most filling stations in Lagos were selling petrol between N1,380 and N1,400 per litre.
- The Nigerian National Petroleum Company (NNPC) Limited’s 30-day discount arrangement also highlights efforts to cushion the impact of rising petroleum product costs, although its effectiveness will depend on market conditions and implementation.
Nigeria’s energy inflation rate more than doubled to 10.85% year-on-year in September 2026, compared with 4.69% recorded in August, reflecting growing price pressures across the energy sector.
The rising cost of petroleum products has continued to affect transportation expenses, particularly in Lagos, where frequent adjustments in petrol prices have contributed to changing fares.
Although declining crude prices could eventually ease some domestic fuel cost pressures, continued uncertainty in the Middle East means Nigerian consumers and transport operators remain exposed to further price fluctuations.