Crude oil prices fell sharply on Wednesday after Pakistan’s prime minister asked the United States to extend a 60-day waiver on Iran sanctions by two weeks. The request came as Washington prepares to reimpose restrictions on Tehran’s oil exports next month.
Prime Minister Imran Khan sent a letter to U.S. President Donald Trump on Tuesday, citing economic strain in Pakistan and the global oil market’s sensitivity to supply disruptions. The waiver, granted in May, had allowed Pakistan to continue importing Iranian oil under limited conditions. Analysts say the delay would ease pressure on regional fuel markets ahead of winter demand.
Brent crude dropped 2.3% to $61.45 per barrel by midday in London, while U.S. West Texas Intermediate fell 2.1% to $55.80. Traders linked the decline to expectations of increased Iranian crude returning to global markets if sanctions are postponed. Pakistan imports roughly 100,000 barrels per day from Iran, mostly for power generation in border regions.
U.S. State Department officials have not commented on Khan’s request. Last week, Trump said he would decide on Iran sanctions by November 4. The waiver extension would need approval from the U.S. Treasury and State Department to take effect.
Energy analysts warn that without the waiver, Pakistan could face fuel shortages and higher electricity costs. Regional traders said the oil price reaction reflects concerns over sudden supply changes ahead of peak winter consumption in Asia and Europe.
Source: e24.no