Brent crude slipped to around $93 per barrel on Friday, May 29, as markets reacted positively to reports that the United States and Iran have agreed to extend their ceasefire by 60 days. The tentative deal, which includes provisions for unrestricted shipping through the Strait of Hormuz, has taken significant heat out of the oil market that peaked near $125 per barrel in late April.

The agreement is yet to be formally signed by President Trump, with both sides still negotiating specific language points. However, Iran is reported to be engaging in good faith, and the prospect of resumed Hormuz traffic is enough for traders to begin unwinding risk premiums built up over weeks of Strait disruption.

For commodity-dependent economies across West Africa and Asia, the easing of oil prices offers some breathing room. Nigeria, which imports refined fuel despite being a crude producer, stands to benefit from reduced pump price pressures if the ceasefire holds. Shipping corridors linking the Persian Gulf to East African and Asian buyers would also normalise, easing the logistical strain on tanker routes.

Analysts caution, however, that the 60-day extension is not a permanent resolution. If nuclear negotiations stall again, the Strait could face renewed closures — and markets would not need long to reprice. For now, Brent’s downward drift reflects cautious optimism rather than resolution.