Global crude oil prices fell sharply on Monday after Donald Trump announced a postponement of a deadline given to Iran regarding the reopening of the Strait of Hormuz.

Market checks showed that Brent crude dropped by about 8 percent to $103.7 per barrel, while West Texas Intermediate crude declined by roughly 7 percent to $91.38 per barrel as of Monday afternoon.

Trump said the five-day extension followed ongoing discussions related to the situation, although Iranian authorities denied holding any direct or indirect talks with the United States.

The development comes amid heightened tensions linked to the ongoing conflict involving Iran, the United States, and Israel, which has disrupted global energy markets in recent weeks.

Last week, the impact of the crisis was felt in Nigeria after Dangote Refinery raised its gantry price of petrol to N1,245 per litre.

Retail fuel prices subsequently increased to between N1,367 and N1,440 per litre across filling stations in Abuja and surrounding areas.

With the latest drop in crude oil prices, analysts expect a possible downward adjustment in petrol prices if the trend continues.