ISLAMABAD: Global oil markets breathed a sigh of relief on Monday as crude prices fell sharply after U.S. President Donald Trump announced he was halting a proposed military strike on Iran.
According to international news agency Reuters, both major benchmarks recorded losses of over $4 per barrel in early trading. Brent crude dropped $4.08 to settle at $83.85 per barrel, while U.S. West Texas Intermediate (WTI) slid $4.01 to $80.66 per barrel. Analysts say the decline was driven by easing geopolitical tensions in the Middle East.
Markets had been jittery last month after the U.S. resumed attacks on Iran and Iranian forces targeted multiple oil tankers near Oman. That escalation had pushed both Brent and WTI up by more than 20%. Trump’s decision to stand down appears to have reversed that rally, at least for now.
The drop in crude could bring some relief to fuel-importing countries like Pakistan, with experts expecting the impact to reflect in the next fortnightly petroleum price review.
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