Crude Oil Prices Plummet 3% as Iran Signals Possible Reopening of Strait of Hormuz

Crude oil prices declined significantly on Tuesday as diplomatic signals from Iran raised hopes of reopening the Strait of Hormuz, easing supply disruption fears. Crude oil futures fell by 3% to ₹8,572 per barrel on the Multi Commodity Exchange (MCX), with a contract for October delivery declining by ₹264 or 3%. Analysts noted that the latest selling came after reports that Iran proposed reopening the Strait of Hormuz within seven days if the US lifts its blockade on Iranian ports.

The decline gathered pace in global markets, with Brent oil futures for November delivery falling $2.53 or 2.52% to $97.81 per barrel and West Texas Intermediate (WTI) also declining by $2.94 or 3.18% to $89.43 per barrel in New York.

Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said the latest slide comes after Monday's sharp selloff, when Brent settled more than 3% lower at $100.34 a barrel and WTI tumbled nearly 5% to close at $95.78.