Oil Prices Retreat Despite Renewed Tensions In Strait Of Hormuz

Global crude prices moved lower on Tuesday, even as conflict in West Asia intensified, signalling a cautious market response after recent gains.

The benchmark Brent crude declined to about $112.88 per barrel, down over 1 per cent, while West Texas Intermediate dropped more sharply to near $103.92 per barrel.

In India, crude contracts for June delivery on the Multi Commodity Exchange also weakened, slipping by Rs 109 to trade around Rs 9,578.

The pullback follows a strong upward move in the previous session, when prices briefly approached $114 per barrel. Analysts suggest that some profit-taking has set in, even as geopolitical risks remain elevated.

At the same time, the Indian rupee continued to face pressure, opening weaker at around Rs 95.31 against the US dollar after hitting a record low in the previous session.

Tensions between the United States and Iran have kept markets on edge. Recent military exchanges in the Gulf have drawn attention to the Strait of Hormuz, a critical route through which a significant share of global energy supplies passes.

Despite the ongoing hostilities, traders appear to be reassessing the immediate supply impact, leading to a temporary cooling in prices. However, experts caution that any further escalation in the region could quickly reverse the trend.

The latest developments follow efforts by US President Donald Trump to facilitate the movement of stranded oil tankers through the Strait, an area that has effectively become a focal point in the broader confrontation.

Market participants remain watchful, with oil prices expected to stay volatile as the situation evolves.

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