Crude Oil Futures Plummet Nearly 8% on Easing US-Iran Tensions

Crude oil futures on the Multi Commodity Exchange (MCX) plummeted nearly 8 per cent as geopolitical tensions between the US and Iran eased. The sharp decline was triggered by a selloff in global oil markets, dragging domestic prices lower.

New Delhi: On Monday, crude futures for August delivery fell Rs 665, or 7.73 per cent, to Rs 7,939 per barrel in a business turnover of 12,994 lots. The September contract also tumbled Rs 537, or nearly 7 per cent, to Rs 7,710 per barrel in a business turnover of 1,865 lots.

According to traders, the decline mirrored losses in global crude oil markets after Washington and Tehran signalled a pause in military escalation. 'MCX crude oil futures have continued their downward momentum in the domestic market on Monday amid easing concerns over supply disruptions in West Asia,' said Aamir Makda, Commodity & Currency Analyst, Technical Research, Choice Broking.

In international markets, Brent crude futures for September delivery fell USD 7.66, or 8 per cent, to USD 89.12 per barrel on the Intercontinental Exchange, while West Texas Intermediate (WTI) crude for September delivery declined USD 6.93, or nearly 8 per cent, to USD 82.38 per barrel on the New York Mercantile Exchange.