SINGAPORE, October 26, 2026: Global oil prices declined on Monday after reaching their highest levels in approximately six months, while Asian stock markets traded cautiously amid continuing uncertainty over Middle East tensions and major central bank decisions.
Brent crude futures fell by about 1.6 percent to $114.88 per barrel during early trading, according to Reuters.
US crude also declined, dropping approximately 1.9 percent to $101.29 per barrel.
The pullback followed reports of diplomatic efforts aimed at reducing regional tensions, although concerns about possible disruptions to energy supplies remained significant.
Oil prices had risen sharply during the previous week as attacks affecting Saudi Arabia and important transport routes increased fears about the security of global petroleum supplies.
Asian equity markets also showed signs of caution. Japan’s Nikkei, South Korean shares and major Chinese stock indices recorded declines as investors assessed geopolitical risks and the outlook for interest rates.
Market participants are awaiting several central bank decisions and major corporate earnings announcements that could influence expectations for economic growth.
For Pakistan, movements in international oil prices are particularly important because the country depends heavily on imported petroleum.
Sustained high crude prices can increase import costs and add pressure to domestic fuel prices, inflation and the external account.
Monday’s decline provides some relief from recent highs, but energy markets remain vulnerable to further developments in the Middle East.