Crude Oil Prices Plummet on Eased Middle East Tensions and Supply-Side Relief
Crude oil prices plummeted nearly 2% on the Multi Commodity Exchange (MCX) on Tuesday, marking its third consecutive decline. The most active contract traded at ₹7,825 per barrel, a ₹132 drop from Monday's close of ₹7,957.
The global market also reflected this trend, with crude slipping to around $82 a barrel as tensions in the Middle East eased. US President Donald Trump announced that the country was engaged in good talks with Iran aimed at ending the conflict and resuming normal oil flows from the region.
Trump said he had chosen to suspend strikes against Iran to give negotiations another chance, which raised expectations of a resolution. The US halted its attacks on Friday after nearly two weeks, while Tehran also stopped its retaliatory strikes.
The supply-side relief added to the decline in oil prices, with crude exports resuming at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast. This major outlet for Kazakh oil had been knocked offline by Ukrainian drone attacks.