Global crude oil prices plunged more than 5% on Monday, marking the largest single-day drop in over six months. Brent crude futures fell $3.5, or 5%, to $65.80 per barrel, while West Texas Intermediate (WTI) saw a similar decline, trading near $62. The sharp correction followed signals of de-escalation in US-Iran tensions after President Donald Trump stated that both countries are “seriously talking.”
A stronger dollar, improved weather forecasts, and a broader commodities selloff added further pressure. Prices had surged up to 16% in January due to Middle East tensions and cold weather, but the trend reversed abruptly. Analysts warn that oversupply risks in 2026 could keep prices under pressure. For oil-importing nations like Pakistan, this drop could lead to cheaper petroleum products locally.
