Global oil prices fell after US President Donald Trump announced plans to resume talks with Iran, raising hopes that tensions in the region could ease.
Brent crude, the global benchmark, initially dropped by around 4.2% to nearly $84 per barrel. US West Texas Intermediate (WTI) crude also fell by about 5% to around $80 per barrel.
Prices declined further during trading. WTI crude fell to around $78.97 per barrel, while Brent crude dropped to $82.92 per barrel.
The price of the United Arab Emirates’ Murban crude also declined, with deals reaching around $80.08 per barrel.
Changes in global oil prices have a direct impact on petroleum prices in Pakistan. The country is currently reviewing fuel prices on a daily basis.
The recent fall in international oil prices could lead to lower petrol and diesel prices in Pakistan, although the final decision will be made by the government.
Meanwhile, Iran has not yet fully reopened the Strait of Hormuz to shipping. According to Iran’s Foreign Ministry, talks are continuing with Oman to establish a safe temporary maritime route.
If an agreement is reached, ships could be allowed to pass through the route on a limited basis. This could further reduce global oil and gas prices by easing concerns over supplies.
