Crude oil falls nearly 2 pc in futures trade as Trump halts Iran strike plans

Crude oil prices declined in futures trade on Friday after US President Donald Trump paused planned military strikes on Iran’s oil infrastructure, easing fears of an immediate disruption in West Asia supplies.

On the Multi Commodity Exchange (MCX), crude oil for June delivery fell by Rs 140, or 1.68 per cent, to Rs 8,204 per barrel, with a trading volume of 12,005 lots. The July contract also weakened, dropping Rs 137, or 1.66 per cent, to Rs 8,103 per barrel.

The fall tracked global benchmarks, where Brent crude for August delivery slipped $2.14 (2.37 per cent) to $88.24 per barrel, while West Texas Intermediate (WTI) July futures declined 2.18 per cent to $85.80 per barrel.

Market sentiment turned softer after Trump said he had halted planned strikes, citing progress towards a possible peace agreement involving Saudi Arabia, the UAE, Qatar and Turkey. The move eased concerns of an escalation that could have threatened oil flows from the Gulf.

“Brent slipped below $89 and WTI below $86 after US President Donald Trump paused planned strikes on Iran, citing progress towards a peace accord,” Kotak Neo said.

However, gains in sentiment were limited as Iranian officials stated that no final agreement had been approved, keeping geopolitical risks in play.

The Organisation of the Petroleum Exporting Countries (OPEC) also reported that production under the Declaration of Cooperation fell by 190,000 barrels per day in May to 33.13 million bpd. It maintained that demand growth would continue to be driven by China, India and other developing Asian economies.

Analysts said that despite Friday’s decline, oil markets remain sensitive to geopolitical developments and could rebound quickly if US-Iran talks break down or supply risks resurface during the peak summer demand season.

With PTI inputs