Ruth Okwumbu-Imafidon, a Legit.ng journalist, has over a decade of experience in business reporting across digital and mainstream media.

After experiencing some reprieve in the last week, the naira has crashed again following the easing of tensions in the Middle East.

Compared to the N1,550/$ it traded on Monday, the Nigerian currency traded around the N1,600/$ mark in the unofficial market on Tuesday, 24 June 2025.

Data from the Central Bank of Nigeria (CBN) shows that in the Nigerian Foreign Exchange Market (NFEM), the exchange rate has also adjusted, with the naira depreciating to N1,550/$.

Analysts have linked the change in the naira’s fundamental outlook to the drop in global oil prices below $70 per barrel.

This was triggered by the easing of tensions in the Middle East after Israel and Iran reached a ceasefire, following President Donald Trump’s announcement.

The US has said that Israel would honor its part of the ceasefire agreement if Iran also agrees to remain peaceful, and both countries appear to have shown compliance.

With peace returning to the region that produces almost a third of global crude supply, oil prices have declined.

Economic Analyst, Olumide Adesina, noted that for countries like Nigeria, where crude oil sales are the major source of foreign exchange (FX) earnings, the currency would be impacted.

At the height of the conflict, Nigeria’s crude oil blend, Bonny Light, was trading at $78.62 per barrel; the Saharan blend traded at $67.18, Girassol traded at $79.56, while the Arab Light traded at $65.72.

This price spike was triggered by the attacks and counterattacks between Israel and Iran, which disrupted oil supplies from the region.

JP Morgan projected that the crisis could greatly impact the global crude market, with prices to hit the $120 to $130 range in the worst possible outcome.

Based on rates published by the CBN, here is a breakdown of the naira’s performance against other foreign currencies in the NFEM as of Tuesday, 24 June 2025.

In related news, renewed hostilities between Israel and Iran impacted global crude production, sending shock waves to the oil prices.

Legit.ng reported that oil prices climbed as high as $78 per barrel amid the several strikes and counterstrikes between both nations.

An expert has explained that if hostilities remain and oil prices climb higher, Nigeria could get higher oil revenues and boost Foreign Exchange reserves, helping the naira to appreciate.

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Source: Legit.ng