Crude oil prices fell by almost 6% in early trading on Tuesday as optimism grew about easing tensions in West Asia. Brent futures decreased by $6.51 to $92.45 per barrel, while US West Texas Intermediate (WTI) crude dropped by $6.12 to $88.65. The decline followed President Donald Trump’s statement that the US campaign against Iran would conclude soon, with victory defined as Iran losing the capacity to develop threatening weapons.
The drop in oil prices was triggered by Trump’s warning to Iran not to disrupt global energy supplies via the vital Strait of Hormuz. He assured the safety of the strait, emphasizing the presence of numerous Navy ships in the region. The Strait of Hormuz is a critical oil transit point, with a significant portion of Gulf producers’ crude exports passing through it, making any threat to its security a global energy market concern.
The United States, in collaboration with Israel, recently conducted significant strikes against Iranian targets to weaken Tehran’s military and nuclear capabilities. Oil prices had earlier surged to session highs of $119.50 for Brent and $119.48 for WTI, marking their highest levels since 2022. Despite the fluctuations, India’s Finance Minister Nirmala Sitharaman stated that the impact of global crude oil price hikes on India’s inflation rate is currently expected to be minimal, given the country’s inflation proximity to the lower limit.
Sitharaman mentioned that India’s crude oil import prices had been declining over the past year until the recent geopolitical tensions in West Asia began on February 28, 2026.
