US-Iran Pause Sends Crude Prices Tumbling Below $90 Barrel

New Delhi: The recent pause in US-Iran strikes has led to a significant decline in crude oil prices, providing some relief for India's oil import bill. Brent crude fell by over 9% on Monday, slipping below $90 a barrel, while the September West Texas Intermediate contract on the New York Mercantile Exchange was at $83.17 a barrel.

The price drop reflected a temporary de-escalation in the conflict, with no attacks reported for the third straight day on Monday. According to Reuters, Iran would halt its attacks as long as the US does the same.

India's oil import bill is heavily dependent on crude prices, and a sustained $1 increase could add ₹18,000 crore to the country's import bill. The recent relief in prices has not eliminated concerns over physical supplies, however, with risks remaining across key shipping routes.