US-Iran Talks Send Crude Oil Prices Plummeting Globally

Crude oil prices plummeted on Monday as diplomatic efforts between the US and Iran raised hopes of easing tensions in West Asia. The sharp decline in global oil benchmarks was reflected in Indian markets, where crude oil futures for August delivery fell by over 6% to Rs 7,601 per barrel on the Multi Commodity Exchange (MCX).

The contract hit its lower circuit level during intraday trade, while the September contract also declined sharply by nearly 5.3% to Rs 7,424 per barrel amid broad-based selling by investors.

Traders attributed the sharp correction to weakness in overseas markets, where market participants pared risk positions amidst expectations that diplomatic efforts could avert a prolonged disruption of oil supplies through the Strait of Hormuz.