Tehran,(Parliament Times):Oil markets tumbled sharply after signs of de-escalation in the ongoing US-Iran conflict, with prices plunging more than 11% following developments around the Strait of Hormuz.
Brent crude futures dropped by $11.12, or 11.2%, to $88.27 per barrel, while US West Texas Intermediate (WTI) crude fell $11.40, or 12%, to $83.29 per barrel.
The decline came after indications that tensions could ease, as Iran signaled a willingness to reduce hostilities during the ongoing ceasefire. Analysts noted that the reopening of the Strait of Hormuz to commercial shipping could significantly boost tanker traffic and stabilize global oil supply.
Despite the positive signals, the US Navy’s blockade of the vital waterway remains in place and is expected to continue until a formal agreement with Iran is reached. The current two-week ceasefire between Washington and Tehran is set to expire on Tuesday, with Iran maintaining that no deal would be possible while Israeli strikes in Lebanon continue.
Earlier optimism had already pushed prices down, fueled by expectations of fresh US-Iran talks in Pakistan and a separate ceasefire between Israel and Lebanon, raising hopes that the broader Middle East conflict may be nearing resolution.
Pakistan has played a key diplomatic role in easing tensions, facilitating dialogue between the two sides. Officials highlighted the country’s growing position as a mediator in global peace efforts, expressing hope that stability in the region would lead to lower fuel prices and improved energy availability domestically.
The conflict began on February 28, when the United States and Israel launched coordinated strikes on Iran, triggering a wider regional confrontation. Iran responded with missile and drone attacks targeting Israel and US-linked sites across the Middle East, while also restricting shipping through the Strait of Hormuz, a critical route for global energy supplies.
Although initial peace talks in Islamabad failed to produce a breakthrough, both sides signaled willingness to continue negotiations. With another round of discussions expected soon, Iran’s decision to reopen the Strait marks a significant step toward de-escalation.