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On Tuesday, Global crude benchmarks moved lower, giving up a portion of the sharp gains recorded in the previous session, as expectations of renewed engagement between the US and Iran improved market sentiment.
The international benchmark Brent Crude dropped over 1 per cent during intraday trade to around $94 per barrel. Similarly, WTI Crude declined more sharply, falling to about $85.5, reflecting easing concerns over immediate supply disruptions.
The pullback follows a strong rally a day earlier, when prices surged after Iran moved to shut the Strait of Hormuz, a key route that carries a significant share of the world’s oil shipments.
In India, crude futures on the Multi Commodity Exchange also softened, slipping during early trade in line with global trends.
Market participants are closely watching geopolitical developments, particularly after the United States intensified pressure on Iran by intercepting an Iranian cargo vessel as part of its maritime restrictions.
At the same time, Iran’s senior leadership signalled a firm stance, with Mohammad Baqer Qalibaf indicating that Tehran would not enter negotiations under coercion.
Shipping activity through the Strait of Hormuz remains limited, adding to uncertainty around supply flows.
The passage typically handles a substantial portion of global crude movement, making any disruption highly sensitive for markets.
Adding to the narrative, US President Donald Trump said a potential agreement with Iran would surpass the earlier Joint Comprehensive Plan of Action, reinforcing expectations of a possible diplomatic breakthrough.
Equity markets, however, showed resilience. Indian benchmarks such as the BSE Sensex and Nifty 50 traded higher in early deals, supported by softer oil prices.
Globally, US equities ended slightly lower, while Asian markets presented a mixed trend, reflecting cautious optimism among investors.
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