Oil Slips From Five-Month High as Iran, Pakistan Push Peace Talks

Brent crude fell 0.76% to $108.72 per barrel on Tuesday, while US West Texas Intermediate for November delivery dropped 0.68% to $102.96, as of 12:31 p.m. EDT. The retreat came after both benchmarks touched five-month highs earlier in the session.

Brent had rallied to $111.90 per barrel, its highest level in five months. WTI briefly reached $110.48, the highest for a nearby contract since April.

Tehran talks raise hopes of easing tension

Iranian President Masoud Pezeshkian met Pakistan's army chief, Field Marshal Asim Munir, in Tehran on Tuesday. Iran's Nournews reported that the discussions centred on Pakistan's mediation efforts and broader regional security developments.

Pakistan brokered an interim peace agreement in June, but the arrangement collapsed after renewed hostilities between Iran and the United States.

The diplomatic push went ahead despite continued attacks by Yemen's Houthi rebels, who claimed responsibility for strikes on Saudi oil facilities, airports and military installations.

Energy analysts at ING said persistent geopolitical uncertainty continues to support oil prices, with traders factoring possible supply disruptions into market valuations.

Prices hold above $100

The latest decline came four days after Brent climbed to $110 per barrel on Friday, its first return to that level since May. That rally was driven by renewed concerns over global energy supplies after attacks on critical infrastructure in the Middle East and disruptions linked to the Russia-Ukraine conflict.

Strikes on Russian and Ukrainian oil infrastructure also fed concerns about the stability of global supplies. Despite Tuesday's pullback, Brent and WTI both held above $100 per barrel, a sign that supply fears have not cleared.

What it means for Nigerian consumers

Petrol in Lagos is selling between N1,380 and N1,400 per litre at most filling stations. Frequent price adjustments have fed into unstable transport fares across major routes in the city.

Nigeria's energy inflation more than doubled to 10.85% year-on-year in September 2026, from 4.69% in August, reflecting growing pressure across the sector. The Nigerian National Petroleum Company Limited's 30-day discount arrangement is meant to cushion the impact of rising petroleum product costs, though its effectiveness will depend on market conditions and how it is implemented.

A sustained fall in crude could ease some domestic fuel cost pressure. But with Middle East supply risks still unresolved, transport operators and households remain exposed to further price swings.