Global crude prices slipped below $90 per barrel for the first time since August, a movement with direct fiscal implications for oil-dependent economies such as Nigeria, where petroleum receipts remain central to government revenue, external reserves, and foreign exchange supply.
Brent crude futures, the global benchmark, traded at $89.70 per barrel early Tuesday in Europe after shedding almost 6% in the previous session. West Texas Intermediate (WTI), the United States benchmark, fell below $85 per barrel, declining more than 2%.
The retreat followed remarks by United States President Donald Trump suggesting that Washington's nearly nine-month conflict with Iran could be moving toward a resolution. The oil market has reversed sharply this month, pulling back from the six-month high recorded in late October.
Trump said on Monday that the war with Iran could end "fairly soon" and that Tehran was "talking very politely" with Washington. Speaking at the White House after meeting Qatar's Prime Minister, Sheikh Mohammed bin Abdulrahman Al Thani, Trump said: "We're seeing momentum toward the end of this conflict. I think it's going to be ending fairly soon."
The president added in a Truth Social post that Qatar, Saudi Arabia, the United Arab Emirates, Bahrain and Kuwait would prefer the status quo, including maintaining a naval blockade against Iran and blocking the country from using ground routes to transport advanced weapons and other materials.
Trump and Vice President JD Vance have both acknowledged that public disapproval of the Iran war and high energy prices contributed to the Republicans' weak performance in the United States midterm elections last week.
Some analysts expect prices to decline further, arguing that Trump may be reluctant to resume military strikes after the Republican losses. Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management, told Bloomberg: "The market is betting Trump won't resume strikes after the midterm blue wave. Crude could fall further, but I think the biggest move is behind us."
With the conflict in its ninth month, congressional Democrats are weighing the December 11 government shutdown deadline as leverage to press the president to end the war. Diplomatic efforts mediated by Qatar are continuing, although it remains unclear whether the softer rhetoric will translate into an agreement.
