Geopolitical Strains Sway Global Oil Markets

Crude oil prices dropped significantly amid profit booking as geopolitical tensions influenced market sentiment. President Trump's remarks on the potential end to the Iran conflict temporarily lifted prices, while OPEC's reduced output and developments in the Strait of Hormuz added volatility. Prices remain sensitive to geopolitical headlines and supply changes.

Crude oil prices fell by more than 3% on Wednesday, reaching Rs 9,265 per barrel, as investors seized profits following remarks by US President Donald Trump that military intervention in Iran could soon conclude.

In the futures market, notable declines included the April delivery contract, which dropped by Rs 302, or 3.16%, and the May contract, down Rs 320, or 3.56%. This trend mirrored a global weakening of near-term crude contracts.

Despite some price support from President Trump's comments, the broader market remains highly volatile, influenced by geopolitical tensions and export disruptions in the Strait of Hormuz. West Texas Intermediate and Brent Crude futures both saw declines as focus remains on OPEC's output cuts and geopolitical developments.

(With inputs from agencies.)