Mumbai, March 26: Iran has rejected direct negotiations with the United States while continuing its military actions. This development has impacted global oil prices, which surged past $100 per barrel on Thursday.
Brent crude futures rose by 1.21% to reach $103.46 per barrel, while U.S. West Texas Intermediate (WTI) crude jumped 1.35% to $91.54 per barrel. The ongoing tensions in the Middle East are the primary drivers of this price increase.
According to Iranian Foreign Minister Abbas Araghchi, contacts between Tehran and Washington through intermediaries should not be interpreted as negotiations. There is also a likelihood that Tehran will reject the U.S.-backed ceasefire proposal.
Earlier, on Wednesday, international crude oil prices experienced a significant drop amid rising hopes for a ceasefire in the West Asia region.
Experts suggest that the recent decline in crude oil prices could provide some relief to India’s inflation and current account deficit (CAD) indicators. However, technical indicators indicate that key support levels are being tested.
For India, every $10 per barrel change in crude oil prices typically affects the current account deficit by 0.3–0.5 percentage points and can increase the Consumer Price Index (CPI) inflation by 20–30 basis points, depending on price movements.
Meanwhile, Iran has announced that it will not impose restrictions on the ships of five ‘friendly’ countries, including India, allowing them to pass through the strategically important Strait of Hormuz. Access will remain limited for others.
Ships from India, along with Russia, China, Pakistan, and Iraq, have been granted safe passage through this vital maritime route despite ongoing regional conflicts. However, Iran indicated that vessels from countries considered adversaries or involved in the current conflict would not be allowed to pass. This includes ships from the U.S., Israel, and certain Gulf nations playing a role in the ongoing crisis.
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