Crude oil prices pared early gains and hit the lower circuit on Monday, falling 9% to ₹8,431 per barrel in futures trade after US President Donald Trump announced a temporary halt to military strikes on Iran’s energy infrastructure. 

On the Multi Commodity Exchange, crude oil contracts for April delivery opened higher and initially surged ₹362, or 4%, to an intraday high of ₹9,620 per barrel. However, prices later reversed sharply, plunging ₹827, or 9%, to ₹8,431 per barrel—its lower circuit limit. 

Analysts attributed the steep reversal to easing geopolitical tensions following Washington’s decision to pause potential strikes on Iranian energy facilities. 

WTI & Brent crude decline

The weakness was mirrored in global markets. West Texas Intermediate (WTI) crude for May delivery declined $7.24, or 7.37%, to $90.99 per barrel while Brent crude for the same month fell $6.70, or 6.30%, to $99.71 per barrel in New York. 

In a post on Truth Social, Trump said he had “instructed the Department of War to postpone all military strikes against Iranian power plants and energy infrastructure for a five-day period,” subject to the success of ongoing talks. He added that Washington and Tehran had held “very good and productive conversations” over the past two days aimed at resolving hostilities in the Middle East. 

Iran denies any negotiations with the US

However, Iran denied any negotiations with the US administration, reiterating that it would not engage in talks before achieving its war objectives, and described Trump’s statement as a retreat from earlier threats. 

On Saturday, Trump had warned Iran to reopen the Strait of Hormuz within 48 hours, a critical global oil transit hub, or face military action targeting key energy facilities. Tehran, in response, warned it could “irreversibly destroy” essential infrastructure across West Asia, including vital water systems, if the US followed through. 

According to analysts, the temporary de-escalation has eased fears of supply disruption, triggering profit-booking and a sharp correction in oil prices after recent gains.