After United States (US) President Donald Trump announced a ceasefire, oil prices have returned to the levels seen two weeks ago—before Israel’s attack on Iran.
However, at the time of publishing this story, neither Iran nor Israel had confirmed the ceasefire from their side.
According to The New York Times, the US benchmark is trading just above $65 a barrel, down nearly $10 since Friday.
Earlier, there were reports that Iran might close the Strait of Hormuz, one of the world’s most critical shipping routes.
Approximately 20 per cent of the world’s oil passes through the Strait of Hormuz, with major oil and gas producers in the Middle East relying on the waterway to transport energy from the region.
Any disruption in the Strait could have caused global oil prices to surge.
Oil prices briefly jumped when trading began on Monday, with Brent crude climbing to $81.40 a barrel.
Now, with the announcement of a ceasefire, it appears the conflict may be winding down.
Increase in oil prices in Pakistan
Earlier, there were reports that Pakistan was preparing for potential oil supply disruptions.
Amid the conflict, it was reported that petrol and diesel would become more expensive from July 1. This increase would affect transportation costs, and may also drive up prices of goods and services, especially food items.
In 2025-26 budget, Pakistan also introduced new carbon Levy of Rs2.5 per litre on petrol, diesel, and furnace oil, starting July 1, 2025, and rising to Rs5 in 2026-27. This is in addition to the existing Petroleum Development Levy (PDL) of Rs78 on petrol and Rs77 on diesel.
