New Delhi: Following US President Donald Trump’s announcement to temporary halt military strikes on Iran’s energy infrastructure, Crude oil prices pared early gains to hit the lower circuit on Monday. The rising crude, which has rattled financial markets across the world, dropped 9 per cent to Rs 8,431 per barrel in futures trade.
On the Multi Commodity Exchange, crude oil for the April delivery opened higher and hit an intraday high of Rs 9,620 per barrel. However, as the day progressed, the prices plunged 9 per cent to Rs 8,431 per barrel.
Analysts attributed the drop in crude oil prices after Trump announced to pause potential strikes on Iranian energy facilities.
Crude prices also went down in the overseas markets. West Texas Intermediate (WTI) futures for the May contract dropped USD 7.24, or 7.37 per cent, to USD 90.99 per barrel, while Brent for the same month delivery declined USD 6.70, or 6.30 per cent, to USD 99.71 per barrel in New York.
In early trade, WTI crude futures hovered near $98 per barrel on Monday after hitting a high of $101.5, supported by escalating geopolitical tensions. Oil prices have rallied around 50% since the Iran conflict began, as disruptions around the Strait of Hormuz severely impacted supply.
Taking to social media platform, Truth Social, Trump said he has “instructed the Department of War to postpone all military strikes against Iranian power plants and energy infrastructure for a five-day period”.
This is subject to the “success” of the ongoing “meetings and discussions,” he said.
“Over the last two days, Washington and Tehran have had very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” the US president stated.
On Saturday, the US issued strong warnings to Iran, while Tehran threatened retaliation targeting critical infrastructure. The International Energy Agency cautioned that the market faces its biggest-ever shock despite emergency reserve releases. Ongoing supply constraints and geopolitical risks continue to drive volatility and keep prices elevated. Tehran said it would “irreversibly destroy” essential infrastructure across many countries in West Asia, including crucial water systems, if the US followed through on Trump’s threat.
With PTI inputs