Oil markets just got a reality check. Brent crude has fallen more than 5% in recent trading sessions, dropping into the $90 to $98 per barrel range, after Pakistani officials signaled meaningful progress toward a US-Iran peace deal. WTI crude followed suit, slipping to as low as $86 to $90.
For months, the multi-front conflict involving the US, Israel, and Iran had kept oil prices elevated well above $100, with peaks near $120. Now, the mere suggestion of de-escalation is pulling prices back to earth.
What Pakistan said, and why it matters
The catalyst here is Pakistan’s role as a mediator. Pakistani Interior Minister Mohsin Naqvi has reportedly been involved in facilitating discussions between the US and Iran since May 2026. Prime Minister Shehbaz Sharif’s public comments on the progress of negotiations added fuel to the optimism.
The discussions have reportedly involved a one-page memorandum of understanding that covers ceasefire terms and sanctions relief. US President Trump acknowledged progress on the talks as of May 25, 2026, though signals from the Iranian side have been more mixed.
