Global oil prices witnessed a sharp decline after growing optimism about a possible ceasefire in the Middle East eased fears of supply disruptions.

In the international market, Brent crude oil dropped significantly to $99.15 per barrel. This marks a decline of 5.34 percent, reversing earlier gains when prices had crossed the $100 mark just a day earlier.

Similarly, West Texas Intermediate (WTI) fell to $88.88 per barrel in US trading. The drop reflects a cooling of tensions and reduced risk premium that had previously driven prices higher.

Market analysts say the sudden decline is directly linked to expectations of a ceasefire in the Middle East, which could stabilize oil supply routes and reduce uncertainty in global energy markets.

The recent surge in oil prices was largely fueled by fears of escalation in the region, particularly concerns over disruptions in key shipping lanes. However, the latest developments have shifted market sentiment, leading to a rapid correction in prices.

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Experts believe that if ceasefire talks progress further, oil prices may continue to stabilize or even decline in the coming days. However, they warn that any setback in negotiations could quickly reverse the trend.

The fluctuation in global oil prices is closely watched by countries like Pakistan, where changes in international rates directly impact local fuel prices and inflation.