Global crude oil prices saw a significant drop on Tuesday, with Brent crude falling by 1.36% to $112.88 per barrel and US West Texas Intermediate (WTI) declining by 2.34% to $103.92 per barrel. In India, crude oil futures on the Multi Commodity Exchange also traded lower, down 1.12% at Rs 9,578. This decline followed a recent surge in prices despite ongoing geopolitical tensions between the US and Iran.
The rupee opened 22 paise lower against the dollar, nearing record lows, with a trading rate of 95.31 after closing at 95.09 in the previous session. Iran’s reported attacks in the Gulf in response to US actions have heightened concerns, as both countries compete for control over the vital Strait of Hormuz, responsible for a significant portion of global oil and gas transportation.
Recent missile and drone attacks in the Gulf have further escalated tensions, with Brent crude prices climbing back to around $113. The situation in the Hormuz region poses challenges for the market, with fears of a potential collapse of the fragile ceasefire. US President Donald Trump’s decision to assist stranded tankers through the blocked Strait has added to the escalating tensions.
