Oil prices crash below $75 as Iran-US deal eases market fears
International oil prices dropped sharply, with crude falling below $75 per barrel for the first time in nearly four months. The decline comes as geopolitical tensions appear to ease in the Middle East.
Oil prices were last seen near the $75 mark in March 2026. That period followed the reported death of Iran’s Supreme Leader Ayatollah Ali Khamenei.
At the time of reporting, West Texas Intermediate (WTI) crude was trading at around $77 per barrel. The benchmark was down nearly 4 percent during the latest trading session.
Brent crude, the global benchmark for oil prices, hovered near $80 per barrel. It recorded a decline of around 3.3 percent.
Crude oil produced from reserves operated by the United Arab Emirates fell to nearly $72 per barrel. The price dropped almost 6 percent within six hours.
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Analysts say the resumption of shipping through the Strait of Hormuz played a major role in the latest decline. The vital trade route had faced disruptions due to regional tensions.
Oil prices began falling further after reports emerged about Pakistan’s role in helping broker a 60-day truce between Iran and the United States. The reported breakthrough came after nearly five months of conflict.
Sources told ProPakistani that Iran and the United States could formally sign a ceasefire agreement later this week. Prime Minister Shehbaz Sharif is also expected to attend the reported signing ceremony.
Market experts believe traders are responding positively to signs of reduced geopolitical risk. Lower concerns over supply disruptions have increased expectations of stable oil flows.
However, analysts warn that oil markets remain sensitive to developments in the region. Any delay or setback in the proposed agreement could quickly reverse the recent price decline.
The latest drop in oil prices shows how strongly global markets react to political developments. Even early signs of peace can quickly reduce fears about supply disruptions.
The reopening of key shipping routes has also improved market confidence. However, oil prices may remain volatile until a final agreement is officially signed.
