KARACHI – Global oil markets witnessed negative trends, wiping out nearly all of the conflict-driven gains that sent prices soaring during the US-Israel confrontation with Iran.
After briefly touching around $120 per barrel at the height of crisis, crude oil plunged amid hope of peace and prospect of additional supply reshaping the market outlook. US benchmark West Texas Intermediate (WTI) crude fell below $75 per barrel, touching its lowest level since early March and its first drop beneath that threshold in more than 100 days. Brent crude also retreated sharply, settling near $78 per barrel.
Oil Prices
| Indexes | Latest Price |
| WTI Crude | $75.07 |
| Brent Crude | $78.30 |
The selloff accelerated after Washington and Tehran announced framework agreement aimed at ending conflict, fueling expectations that sanctions could eventually be eased and Iranian oil could begin flowing back into global markets. For traders who only weeks ago were bracing for a prolonged supply shock, the shift has been dramatic.
Hormuz remained at center of the story while waterway, through which major portion of global oil exports travels, was effectively disrupted after military action erupted earlier this year. US President Donald Trump claimed US quietly moved dozens of vessels through the corridor during the crisis and transported millions of barrels of oil despite mounting regional tensions.
Markets responded instantly to signs that the route could soon reopen. Fears of severe supply disruptions, which had driven crude prices to wartime highs, rapidly gave way to expectations of greater availability and improved shipping conditions.
During conflict, rising oil prices fueled concerns about higher inflation, increased fuel costs, and the possibility of further interest-rate hikes. Now, with crude prices tumbling, investors are increasingly betting that inflationary pressures could ease.
Still, analysts warn against hoping for quick return to normal. While the framework agreement has boosted confidence, restoring oil flows through the Strait of Hormuz to pre-conflict levels could take time. Any setback in negotiations or renewed tensions in the region could quickly reignite volatility.
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