DUBAI – United Arab Emirates residents are likely to get some relief in July, with petrol and diesel prices expected to decline as global oil markets stabilize after troubling period.
Fuel prices are set to come down, although the reduction is expected to be modest rather than dramatic. UAE Fuel Price Committee is scheduled to announce the official fuel prices for July on Tuesday, confirming the extent of the anticipated cut.
The expected decrease comes after international crude prices retreated from recent highs that were driven by escalating geopolitical tensions in the Middle East. On Monday, Brent crude traded at approximately $73.18 per barrel, while US benchmark West Texas Intermediate (WTI) stood at around $69.96 per barrel, marking a sharp decline from the panic-driven rally witnessed earlier this month.
Global oil markets were rattled after fears emerged that the Strait of Hormuz—one of the world’s most critical energy corridors—could face disruptions amid rising hostilities between Washington and Tehran. At the height of the crisis, Brent crude briefly surged to between $110 and $120 per barrel, triggering concerns over another wave of fuel price hikes worldwide.
Although crude prices have since eased, analysts warn that geopolitical risks continue to cast a shadow over energy markets. Ongoing uncertainty surrounding relations between the United States and Iran remains a key factor influencing oil price movements.
UAE reviews domestic fuel prices every month based on the average international crude oil prices recorded during the previous month. With global benchmark prices now trading well below their recent peaks, consumers are expected to benefit from lower petrol and diesel rates in July. However, market experts caution that the decline is likely to be limited rather than substantial.
Meanwhile, fresh military exchanges between the United States and Iran have once again injected volatility into global oil markets. Brent crude climbed about 0.9 percent on Monday after both countries exchanged strikes over the weekend, reviving concerns over the security of shipping through the Strait of Hormuz, a strategic passage that handles nearly one-fifth of global oil and liquefied natural gas trade.
According to the US Central Command, American forces launched strikes against Iranian targets on Friday and Saturday, saying the operation came in response to alleged Iranian attacks on two commercial vessels transiting the Strait of Hormuz. Iran retaliated by firing missiles and deploying drones against US military installations in Bahrain and Kuwait, further escalating regional tensions and keeping investors on edge despite the temporary easing in oil prices.
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