Oil prices continued to fall after the United States and Iran signed the Islamabad Memorandum of Understanding, easing tensions between the two countries.
International media reported that crude oil prices in global markets fell by up to 3%. US benchmark West Texas Intermediate (WTI) crude declined to $74.68 per barrel, while Brent crude was priced at $77.68 per barrel.
Before the outbreak of the Iran conflict, crude oil was trading at around $73 per barrel in international markets. During the hostilities, prices rose sharply and at one stage exceeded $126 per barrel.
The decline in global oil prices has also strengthened expectations of lower petroleum product prices in Pakistan. Petroleum Minister Ali Pervaiz Malik said in a statement on X that falling international oil prices had increased the prospects of relief for consumers.
He said signs of easing tensions between Iran and the United States had led to a decline in global oil prices. He added that the prime minister had directed that the benefit of any reduction in prices should be passed on to the public without delay.
Malik said a transparent formula would be prepared for determining petroleum product prices. He added that a high-level committee had also been established to oversee weekly price reviews.
He said there was an expectation that the government would announce a significant reduction in petroleum product prices on Friday.
