Crude Oil Prices Rebound on MCX Amid US-Iran Diplomatic Efforts

Crude oil futures on MCX rebounded by over 1% to Rs 7,761 per barrel on Tuesday amid persistent supply disruption concerns and US-Iran diplomatic efforts. The Multi Commodity Exchange (MCX) saw crude oil for August delivery trade higher by Rs 116, or 1.52%, at Rs 7,761 per barrel.

Traders pointed to US President Donald Trump's statement on talks with Iran as a reason for the price increase, although Iran denied any negotiations between Washington and Tehran. 'MCX crude oil prices climbed over 1% as geopolitical tensions continued to influence market sentiment,' said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.

In international markets, Brent oil futures for October delivery rose 1.56% to USD 85.08 per barrel in the Intercontinental Exchange, while West Texas Intermediate (WTI) crude futures for September delivery was trading 1.15% higher at USD 81.26 per barrel in New York Mercantile Exchange.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Neo, noted that despite the price recovery, tanker traffic through the Strait of Hormuz remains significantly below pre-conflict levels, and physical crude flows remain a concern.