MCX Crude Oil Prices Rise Amid US-Iran Diplomatic Efforts

Crude oil futures on the Multi Commodity Exchange (MCX) rebounded by over 1% to Rs 7,761 per barrel on Tuesday amid persistent supply disruption concerns and US-Iran diplomatic efforts.

The August delivery contract of crude oil traded higher by Rs 116 or 1.52% at Rs 7,761 per barrel, while the September contract advanced Rs 109 or 1.46% to Rs 7,570 per barrel.

Traders said crude oil prices rose after US President Donald Trump mentioned talks with Iran were underway, describing them as Tehran's 'last chance' to end the five-month conflict. However, 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.

International markets saw Brent oil futures for October delivery rise 1.56% to USD 85.08 per barrel in the Intercontinental Exchange, while US-based benchmark West Texas Intermediate (WTI) crude futures for September delivery traded 1.15% higher at USD 81.26 per barrel.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Neo, said Brent's recovery from a low near USD 82.5 was due to Trump calling off the planned strike and announcing fresh talks.

However, Banerjee noted that the market's attention remains on physical crude flows rather than diplomatic headlines, with tanker traffic through the Strait of Hormuz significantly below pre-conflict levels.