ISLAMABAD – Global oil prices moved down amid growing speculation of potential US–Iran diplomatic breakthrough, just as military tensions over the Strait of Hormuz escalated into a dangerous standoff threatening global supply routes.
Benchmark crude prices retreated after Monday’s explosive rally. WTI crude futures plunged $2.32 to $96.76 per barrel, while Brent crude fell $1.45 to $97.91. The drop followed a dramatic previous session in which Brent surged over 4% and WTI climbed nearly 3%, triggered by the U.S. military’s unprecedented blockade of Iranian ports.
Oil Prices
| Index | Last | Change |
| WTI Crude | 96.76 | -2.32 |
| Brent Crude | 97.91 | -1.45 |
| Murban Crude | 103.33 | +5.17 |
| Natural Gas | 2.605 | -0.022 |
| Gasoline | 3.084 | -0.032 |
Despite a pullback, volatility remained extreme across energy markets. Murban crude surged sharply by $5.17 to $103.33, while natural gas edged lower by $0.022 to $2.605 and gasoline slipped $0.032 to $3.084.
Tensions intensified after reports that the U.S. military expanded its blockade eastward, extending operations into the Gulf of Oman and the Arabian Sea. Ship-tracking data revealed immediate disruption, with two vessels reportedly turning back as the Strait of Hormuz.
Tehran responded with threats to target ports across Gulf nations following the collapse of weekend negotiations in Islamabad aimed at de-escalating the crisis. The situation raised fears of a wider regional energy conflict that could choke global crude flows.
Yet amid the brinkmanship, diplomatic signals injected uncertainty into the market direction. Reports indicated that U.S.–Iran communication channels remain open, while Pakistani Prime Minister Shehbaz Sharif confirmed continued efforts to defuse tensions. Former U.S. President Donald Trump also stated that Iran “wants to make a deal,” adding to speculation that backchannel diplomacy could still prevent full-scale escalation.
For now, oil markets remain trapped between two forces: the threat of a widening Middle East conflict that could cripple supply, and the hope of last-minute diplomacy that could pull the world back from the edge of an energy crisis.
Second Round of US–Iran Talks in Islamabad or Geneva soon as Ceasefire deadline nears
