Global oil prices have fallen sharply this week, dropping to near $79 per barrel in some forecasts as hopes rise for a US-Iran peace deal. Pakistan’s mediation efforts have played a key role in easing tensions and boosting market confidence.
On Friday, June 12, 2026, Brent crude settled around $87.33 per barrel after a 3.4% daily drop, marking its lowest level in three months. WTI crude also declined. Prices have fallen by over 17% in the past month due to expectations that the Strait of Hormuz will reopen for safe oil shipping. This vital waterway carries about 20% of the world’s oil trade.
Pakistan Prime Minister Shehbaz Sharif announced that the final text of a peace deal had been agreed upon. Both sides are now working on the next steps. US President Donald Trump also shared positive updates, which helped calm fears of supply disruptions. Analysts say the deal could restore Iranian oil exports and lower global energy costs.
Lower oil prices bring relief to importing countries but create uncertainty for Pakistan’s local fuel rates. The government reviews petrol and diesel prices every two weeks based on international rates and the rupee’s value. While global prices are down, local adjustments depend on taxes, subsidies, and economic policies. Recent weeks saw small cuts in petrol prices.
Experts believe sustained peace could further reduce prices and help Pakistan’s economy by lowering the import bill. However, the full effects will depend on how quickly the deal is signed and implemented. Consumers hope for more relief at petrol pumps in the coming weeks.
