2 min readJun 18, 2026 10:00 PM IST
Pakistan’s Petroleum Minister Ali Pervaiz Malik on Wednesday hinted that the government is considering reducing fuel prices following the announcement of a peace agreement between the United States and Iran.
Speaking to Geo News, Malik said the government would “bring good news regarding a reduction in petroleum prices” after the two countries agreed on a framework to end hostilities. He added that Prime Minister Shehbaz Sharif had previously assured the public that any fall in global oil prices would be passed on to consumers.
The US and Iran have agreed to a peace deal, which they plan to formalise by Friday, June 19, 2026. Both countries have committed to concluding a final agreement upon signing a 14-point Memorandum of Understanding. The accord is aimed at halting the US blockade of Iran and reopening the Strait of Hormuz, a critical chokepoint for global oil and gas supplies. The conflict began on February 28, 2026, when US and Israeli forces struck Iran.
The announcement sent oil prices sharply lower. Brent crude fell below $80 a barrel — its lowest level since the conflict began in March — while West Texas Intermediate (WTI) also declined. The prospect of Iranian oil returning to global markets lifted hopes that inflation could ease, and the drop in crude prices pulled bond yields lower as well.
The price relief comes at a critical time for Pakistan. The country’s oil and petroleum import bill climbed to $800 million last month, and the government has been struggling to manage the strain of rapidly rising energy costs, a concern Malik raised during a recent Cabinet meeting.
(Written by Paramita Datta, who is an intern with The Indian Express)
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