Why Did Crude Oil Prices Fall Below $85 Per Barrel?
Global crude oil prices fell sharply to around $85 per barrel after former U.S. President Donald Trump indicated the Iran-related conflict was “almost over.” The statement triggered a swift market correction, reversing an earlier surge that had pushed oil above $100 per barrel amid escalating tensions following reported U.S.-Israel military operations in the region.
Strait of Hormuz Disruption Fueled the Oil Price Spike
The conflict had raised fears over oil supply disruptions through the Strait of Hormuz — a critical chokepoint for global energy trade. Any interruption to this route significantly impacts crude oil supply worldwide, including petroleum prices in Pakistan. As geopolitical risks eased following Trump’s remarks, energy markets responded with a rapid decline in both Brent crude and WTI oil prices, offering temporary relief to oil-importing economies.
