Global Oil Prices Drop 16% After Iran–US Ceasefire, Fuel Relief Expected in Nepal
Following a ceasefire in the US–Iran conflict, global crude oil prices fell by over 16%, raising expectations of lower fuel prices in Nepal.
Global energy markets witnessed a historic crash after a two-week ceasefire was announced in the ongoing US–Iran–Israel conflict.
US President Donald Trump confirmed the ceasefire, which was reportedly brokered with mediation from Pakistan’s Prime Minister Shehbaz Sharif.
Following the announcement, West Texas Intermediate (WTI) crude oil fell more than 16% to $94.47 per barrel, while Brent crude dropped over 15% to $92.21 per barrel, marking one of the sharpest single-day declines since the Gulf War era.
The Strait of Hormuz, which handles nearly one-quarter of global seaborne oil trade, had been severely disrupted during the conflict, causing global supply fears. The ceasefire agreement restores safe passage under Iranian military supervision.
For Nepal, a landlocked country heavily dependent on imported fuel, the development is highly significant. The Nepal Oil Corporation had been facing heavy financial pressure due to rising global prices, while petrol prices currently stand at Rs. 202 per liter in Kathmandu, Pokhara, and Dipayal.
Experts believe that falling global crude prices will gradually ease fuel costs in Nepal, depending on adjustments by the Indian Oil Corporation, which revises prices every 15 days.
However, no official statement regarding immediate price cuts has been issued yet by Nepal Oil Corporation. Despite expectations of a sharp drop, the impact on tourism, remittances, and household inflation will take time to normalize.