Oil prices fall as Iran-US deal raises hopes for Hormuz reopening

Oil prices fall as Iran-US deal raises hopes for Hormuz reopening

Global oil prices continued to decline as expectations grew that the Strait of Hormuz, a key route for global energy supplies, could reopen under a potential agreement between Iran and the United States. The downward trend in international markets has also increased the possibility of lower fuel prices in Pakistan.

Energy markets reacted positively to reports of progress between Tehran and Washington. International crude prices dropped by another 5 percent, with US crude trading at $76 per barrel and Brent crude at $79 per barrel.

According to a Wall Street Journal report, the proposed agreement may allow Iran to resume oil exports immediately, further strengthening the decline in oil prices.

Before the Iran conflict began, crude oil traded at around $73 per barrel. During the conflict, prices surged and briefly crossed $126 per barrel.

Prime Minister Shehbaz Sharif previously assured the public that the government would provide relief once global conditions stabilized. Addressing the National Assembly earlier this week, he said the conflict had placed significant pressure on Pakistan’s economy, but the government worked to shield citizens from rising inflation and would pass on the benefits of improving global conditions.

Minister of State for Law and Justice Barrister Aqeel Malik also expressed optimism that Iran and the US could sign an agreement on Friday. He said Pakistan could witness a major reduction in petroleum prices on the same day, adding that petrol prices may fall by more than Rs100 and potentially exceed Rs150 per litre.