Oil price eases after Trump’s unilateral truce
Oil price eased on Monday to $96 a barrel after Donald Trump, United States (US) president, announced a five day truce in the ongoing war with Iran.
The Iranians have been responding decisively to the attacks launched on it by Trump and Israel’s Benjamin Netanyahu in the midst of negotiations between Washington and Tehran.
The military strikes on power plants and energy infrastructure has led to sharp rise in energy cost globally.
However, Trump’s announcement saw the Brent crude dropping by 9.47 percent to $96.33 per barrel. US West Texas Intermediate dipped by 8.99 percent to $89.40 a barrel.
In a post on his Truth Social media today, Trump said the decision to postpone the military strikes followed “very good and productive conversations” between the United States and Iran.
Iran has however denied entering into any talks with the United States.
Trump’s decision came a day after Iran warned it would completely close the Strait of Hormuz if Trump carried out his threat to bomb Tehran’s power plants.
The US president had issued the 48-hour ultimatum on Saturday, which would have expired on Monday.
On March 12, the US approved a short-term authorisation permitting the sale of Iranian oil which he claimed was stranded at sea, a claim denied by Iran.
Petrol prices in Nigeria rose further to record levels on Monday as the Middle East rages on.
