Following the possibility of a ceasefire deal between the US and Iran, a decline in oil prices is expected.
The potential reopening of the Strait of Hormuz also suggests easing supply risks, which could further push prices down.
Brent crude fell to a low of $93.36 per barrel from an earlier high of $98, before rebounding to around $94.
The movement reflects reduced geopolitical tensions and easing concerns over supply disruptions, which had previously driven prices higher.
Pakistan’s government may also provide relief next month by reducing petrol prices locally.
However, it is pertinent to mention that no final deal has been reached yet, and a formal response is still awaited from US President Donald Trump.
US Vice President JD Vance has now confirmed that the US-Iran ceasefire deal is ‘very close’ to being finalised.
“We are not there yet, but we are very close and we are going to keep on working at it,” he told reporters.
Vance said negotiators are “going back and forth on a couple of language points”, which include the “question of enrichment”.
According to reports, the deal will extend the ceasefire for 60 days and launch talks on the future of Iran’s nuclear programme.
