International crude oil prices decreased by nearly 3% on Wednesday, with Brent crude futures falling to $102.79 per barrel, down 2.9% from the day’s high of $105.86. Similarly, US West Texas Intermediate (WTI) crude dropped 2.19% from its high of $103.31 to $101.25 per barrel. The decline followed a strong rally earlier in the day, driven by shifting geopolitical signals and macroeconomic cues.
Analysts noted that market volatility has increased due to uncertainties surrounding the US-Iran conflict. President Donald Trump’s suggestion of a potential resolution within two to three weeks, coupled with Iran’s conditional willingness to end hostilities, has improved sentiment. However, concerns persist regarding the agreement’s timing, structure, and the risk of disruptions in the Strait of Hormuz.
The rebound in bullion prices, aided by a weaker dollar, has contributed to the upward pressure on oil prices. Despite global uncertainties and mixed economic data from the US and China, crude oil prices have remained above $100 per barrel in March. The ongoing disruptions in the critical chokepoint of the Strait of Hormuz, responsible for nearly 20% of global crude oil shipments, have further supported prices.
The recent remarks by President Trump hinting at a potential easing of tensions with Iran have led to some profit-taking in the oil market. However, the uncertainty surrounding the resolution’s timeline and supply route risks continue to keep crude prices elevated. Domestically, the easing sentiment has positively impacted Indian equity markets, with benchmark indices Sensex and Nifty rising by up to 3% in early trade.
