Oil Prices Ease Amid US-Iran Tensions, but Supply Risks Linger

The global oil market remains on edge as tensions between the United States and Iran continue to escalate. Following renewed military strikes, Brent crude futures fell 0.13% to $95.50 a barrel, while U.S. West Texas Intermediate crude edged up 0.04% to $91.05 a barrel.

U.S. President Donald Trump's comments that the recent attacks on Iran would be short-lived have provided some relief to investors, but concerns over supply disruptions persist. The Strait of Hormuz remains a critical flashpoint, with shipping activity through the waterway slowing sharply.

A Reuters poll of 31 analysts predicted Brent will average $85.08 a barrel in 2026, although persistent Middle East supply risks could keep prices above $80 for the year. India's economy is particularly vulnerable to rising oil prices, with a sustained rise in international crude prices threatening to increase import costs and put pressure on corporate margins.