Nigerian crude and major oil contracts have extended their losing streak for the fourth consecutive day, with prices dropping by nearly 6% to trade around $105 per barrel.

The decline in crude oil prices is attributed to easing supply concerns, fueled by optimism over a potential agreement between the United States and Iran.

According to a US official cited by Axios, an agreement involving a 60-day extension of the ceasefire between the US and Iran is reportedly close to being signed.

Under the proposed agreement, Iran would commit to removing mines from the Strait of Hormuz and allow free passage for ships, thereby reopening the crucial waterway.

In return for these measures, the United States would lift its current blockade of Iranian ports.

However, President Trump posted on social media that he had advised his representatives “not to rush into a deal,” which has somewhat tempered expectations for an immediate agreement.

A senior US administration official also indicated that the agreement would not be signed on Sunday, despite progress being made.

The potential deal would involve Iran relinquishing its enriched uranium, reopening the Strait of Hormuz, and ending the ongoing conflict. The initial phase would include a 60-day ceasefire extension, during which nuclear talks would continue and traffic through the Strait would resume.