Dubai benchmark crude oil recorded a sharp decline on Thursday, falling to $113 per barrel after losing $29 in one of the steepest daily corrections witnessed in recent months.
| Benchmark | Feb 27, 2026 | Mar 23, 2026 | Mar 24, 2026 | Mar 26, 2026 |
|---|---|---|---|---|
| Dubai Crude | $71.23 | $169.75 | $157.00 | $113.00 |
The sudden drop is being largely attributed to small relief in regional developments. Easing fears of escalation in the Iran-US war helped calm energy markets.
Pakistan’s engagement in backchannel talks between Washington and Tehran helped develop renewed optimism about de-escalation.
A high-level conversation between Pakistan’s military frontman Asim Munir and US President Donald Trump, along with Prime Minister Shehbaz Sharif’s call to Iranian President Masoud Pezeshkian, helped ease tensions, albiet temporarily.
The diplomatic developments provided temporary relief to global oil markets, particularly benefiting energy-importing economies.
Despite the correction, oil markets still remain sensitive to geopolitical developments, and renewed volatility cannot be ruled out if negotiations stall or tensions re-escalate.