Crude oil benchmarks have experienced extreme volatility: Oil Prices Plunge from $120 Peak to $102

Crude oil benchmarks have experienced extreme volatility in the latest trading session, surging to intraday highs near $120 per barrel before retreating sharply to current levels around $102 per barrel for WTI. The dramatic swing follows initial panic over prolonged disruptions in the Strait of Hormuz due to the ongoing US-Israel-Iran conflict, tempered by reports of potential diplomatic efforts, resumed limited tanker flows, and market profit-taking.

Current Rates (as of March 9, 2026, approximate live levels around midday PKT):
– WTI Crude (US benchmark): $102 per barrel, down from intraday peak of $119–$120, settling after a pullback of 5–10% from highs; still up 12–13% overall today but well off session top.
– Brent Crude (global benchmark): $107–$108 per barrel, similar pattern, peaking near $119–$120 before easing; up 15–16% intraday but retreating from extremes.

The rapid climb earlier today was fueled by fears of sustained supply shocks: halted shipping through the Strait of Hormuz, attacks on tankers, production curtailments by Gulf producers like Iraq and Kuwait, and broader Middle East escalation. Prices briefly touched levels not seen since 2022, marking one of the steepest single-session rallies on record (with weekly gains previously hitting 30–36%).

However, the pullback to $102 for WTI reflects cooling sentiment, possibly from G7 finance ministers’ discussions on stabilizing supplies, partial resumption of some tanker movements, or expectations that disruptions may not persist indefinitely. Analysts note that while fundamentals remain tight, markets are pricing in a lower risk of full, prolonged closure of key chokepoints.

This rollercoaster has amplified global market turbulence, pressuring stocks and raising inflation concerns, though the retreat offers some relief for consumers and economies. In Pakistan, where fuel prices track international benchmarks closely, any sustained drop could ease pump prices in coming adjustments.