Oil Prices Fall Nearly 3% As US-Iran Talks Ease Supply Concerns

International oil prices declined sharply on Tuesday, reversing earlier gains as renewed optimism over potential negotiations between the United States and Iran reduced fears of supply disruption.

Benchmark Brent crude fell to $96.6 per barrel, marking a drop of nearly 2.8 per cent. West Texas Intermediate (WTI) slipped over 3 per cent to $95.69, touching its lowest level during early trading hours.

The downturn followed losses recorded in the previous session, where Brent ended at $99.36, down 3.64 per cent, while WTI closed at $96.57, registering a steeper fall of 7.79 per cent.

Earlier in the week, oil markets had surged significantly. On April 12, prices jumped by more than 8 per cent after US President Donald Trump announced a blockade targeting Iranian ports, intensifying concerns over global supply.

Subsequent reports suggested that the US military operation could expand beyond the Strait of Hormuz into the Gulf of Oman and the Arabian Sea, raising further uncertainty.

Shipping data also indicated disruptions, with at least two vessels reversing course after the blockade took effect.

Sentiment shifted after indications that diplomatic engagement between Washington and Tehran remains ongoing.

Trump stated on Monday that Iran is willing to negotiate, fuelling expectations of a possible resolution.

In parallel, precious metals saw upward movement. Gold futures on COMEX climbed 0.74 per cent to $4,802.8, while silver prices advanced by 2 per cent to $77.16 per ounce.

Domestically, Indian financial markets were closed for Dr BR Ambedkar Jayanti.

The Multi Commodity Exchange suspended trading during the morning session and will resume it later in the evening.

Cryptocurrency markets reacted positively to the improved risk outlook, with Bitcoin rising to its highest level in four weeks on expectations of easing geopolitical tensions.

Also Read: Crude Oil Prices Jump Nearly 10% On Strait Of Hormuz Tensions