Oil prices drop on hopes of US withdrawal from Iran conflict
2nd April 2026
Oil prices fell on Wednesday following reports that the United States may soon withdraw its troops from Iran, raising expectations of a possible de-escalation in the ongoing conflict.
US President Donald Trump, in an interview with Reuters, indicated that the withdrawal could happen “pretty quickly,” adding that the US could still carry out targeted “spot hits” on Iranian positions if necessary. While he suggested on Tuesday that the military campaign could end within two to three weeks, he declined to give a specific timeline in the latest interview.
The development triggered a decline in global oil prices, with Brent crude dropping from around $115 on Tuesday to about $101 by Wednesday evening. West Texas Intermediate (WTI) also fell to $99.32. Analysts attribute the dip to growing optimism that tensions in the region could ease.
Despite the decline, oil prices remain more than 40 percent higher than levels recorded in late February when the conflict began.
Uncertainty, however, continues to linger. Iran’s Islamic Revolutionary Guard Corps (IRGC) has reportedly threatened to target 18 American technology and industrial companies operating in the Middle East, including major firms such as Microsoft, Google, Intel, Tesla, IBM, Apple, and Boeing, accusing them of supporting US and Israeli military operations.
Meanwhile, the conflict continues to disrupt shipping through the Strait of Hormuz, a critical global oil route. In response to rising global prices, Brazil’s state-owned oil company Petrobras increased jet fuel prices by about 55 percent on Wednesday, in line with international oil trends and exchange rate movements.
In Nigeria, the Dangote Refinery has begun exporting aviation fuel and diesel to other countries amid the tensions, while assuring that domestic supply remains unaffected.
Petrol prices in Nigeria have, however, declined to an average of N1,250 per litre at many filling stations, particularly in the South-West, following a recent reduction in Dangote Refinery’s gantry prices.