WASHINGTON: In a surprising turn of events, U.S. President Donald Trump announced that military strikes on Iranian energy facilities would be postponed, leading to a sharp drop in crude oil prices across international markets.
Reports from global media outlets indicated that oil prices started falling even before trading opened, following Trump’s statement.
The international benchmark, Brent Crude, which had previously soared to $113 per barrel, dropped from $109 to $94 shortly after the announcement. It later rebounded slightly and is now trading around $97 to $100 per barrel.
Meanwhile, U.S. West Texas Intermediate (WTI) crude experienced a decline of nearly 10%, settling at approximately $88.80 per barrel. Trump expressed optimism about ongoing diplomatic efforts, tweeting that “very positive and productive conversations” had taken place between the U.S. and Iran concerning a potential resolution to Middle Eastern tensions. He also indicated that diplomatic discussions would continue throughout the week. Furthermore, he directed the U.S. military to halt all planned strikes on Iranian energy infrastructure for a period of five days, depending on the progress of negotiations.
Before the announcement, oil prices had already surged past the $100 mark, driven by fears of imminent conflict.
In a separate development, Prime Minister Shehbaz Sharif announced an increase in the excise duty on high-octane fuel used in luxury vehicles, raising it from 100 to 300 rupees per liter. A government statement clarified that this rise applies exclusively to fuel used in high-end vehicles, with prices for regular fuel in lower and middle-income cars remaining unchanged.
