After several months of consecutive increases in gasoline prices in the UAE, signs of a change in direction are now visible. The peace agreement between the USA and Iran, announced on Monday morning, has quickly pulled down oil prices, strengthening the possibility of a reduction in fuel rates in the UAE over the next month.

Brent crude oil prices have decreased by more than $11 per barrel since the beginning of June, and immediately after the announcement of the USA-Iran agreement, it dropped by more than 4%. This comes as, in recent months, the conflict between Israel and Iran and concerns about shipping traffic in the Strait of Hormuz had led to rising oil prices and increased fuel costs in the UAE.

In June, gasoline prices increased for the fourth consecutive month, with Super 98 reaching 3.95 dirhams, Special 95 at 3.83 dirhams, and E-plus 91 at 3.76 dirhams per liter; an increase of about 8% compared to the previous month.

However, the situation now appears different. The average Brent oil price in the first two weeks of June was around $93, while this figure in the same period of May was over $105. If geopolitical tensions do not escalate again and the downward trend in oil continues, residents of the UAE can expect news of a reduction in gasoline prices by the end of this month.

Experts believe that as the political atmosphere in the Middle East calms down, the market's focus will return to the actual supply and demand for oil; a situation that could exert more pressure on oil prices and consequently on fuel rates in the UAE.

Source: Gulf Times