Global crude oil prices fell by more than 2% during trading on Friday, according to a Bloomberg report, despite persistent concerns over inflation and geopolitical tensions.
US West Texas Intermediate (WTI) crude for September delivery dropped $2.28, or 2.47%, to settle at $89.91 per barrel, while Brent crude for September delivery fell $2.80, or 2.78%, to $97.89 per barrel.
Although oil prices declined during the session, Bloomberg noted that concerns over global inflation remain elevated, driven by energy market volatility, trade restrictions and new tariff measures.
The report said higher energy costs, additional US import tariffs and increased global investment have renewed fears of inflationary pressures, posing fresh challenges for policymakers and central banks.
According to Bloomberg, if crude oil prices were to climb towards the $100-per-barrel mark, global supply chain costs could rise significantly, increasing the prices of fuel, transportation and a wide range of consumer goods.
The report added that the renewed inflationary risks have emerged at a time when central banks were assessing the possibility of easing inflation. However, rising energy costs and trade-related measures have complicated the global economic outlook and monetary policy decisions.
Economists warned that a combination of elevated oil prices and additional tariffs could increase business costs, with the burden likely to be passed on to consumers through higher prices.
The fluctuations in global crude prices are closely watched in Pakistan, where international oil market trends influence domestic petroleum prices.
Amid the ongoing situation in the Middle East, petrol and diesel prices in Pakistan have been subject to frequent adjustments in line with changes in global energy markets.
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