Peppermint oil is promoted for topical use (applied to the skin) for problems like headache, muscle aches, joint pain, and itching. In aromatherapy, peppermint oil is promoted for treating coughs and colds, reducing pain, improving mental function, and reducing stress.Peppermint oil can calm and soothe skin because of menthol's cooling effect. This may help ease itching and irritation from issues like hives, poison ivy, or poison oak. Sickness. You can also use the essential oil to treat colds, sinus infections, and coughs.