Global oil prices fell sharply on Tuesday, hitting their lowest levels in more than a week as ongoing diplomatic talks between the United States and Iran eased fears of a wider conflict and potential disruptions to Middle East energy supplies.
Brent crude futures slipped 0.6% to $87.82 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 0.8% to $81.95. Both benchmark contracts had earlier fallen around 1%, reflecting improving market sentiment.
Investor confidence improved after U.S. President Donald Trump said Washington was holding “good talks” with Iran, raising hopes of a diplomatic breakthrough. However, Trump warned that U.S. military strikes could resume if negotiations fail, while Iran also maintained its stance on possible retaliation.
Market analysts said the prospect of a peaceful resolution has reduced concerns over disruptions to oil shipments through key Middle East trade routes.
Despite the easing tensions, experts cautioned that the situation remains uncertain. Analysts also noted that shipping activity through the Strait of Hormuz and the Red Sea remains below normal levels, with reduced crude exports contributing to market volatility.
Meanwhile, weaker fuel demand, particularly in Asia, has also weighed on oil prices. Preliminary market estimates further suggest that U.S. crude oil inventories declined last week, while distillate fuel stocks likely increased.
The federal government decreased petrol prices by Rs 1. After a Rs 1 reduction in petrol prices, the new petrol price is Rs 334.18, the private media outlet reported on Monday.
On the other hand, the government increased the diesel prices by Rs 3.37 and now the new price of diesel is Rs 386.83.
Also Read: Petrol, diesel prices increased again in Pakistan
