New Delhi, June 2: Crude oil prices experienced a decline on Tuesday amid ongoing uncertainty surrounding negotiations between the United States and Iran. This follows a significant surge in oil prices during the previous trading session, as the market assesses signals related to the talks.
International benchmark Brent crude traded down nearly 1% at $94.04 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude fell by over 1%, reaching $91.14 per barrel.
In the domestic market, crude oil futures for June delivery were trading at ₹8,708 on the Multi Commodity Exchange (MCX), down ₹28 or 0.32%. By 10:30 AM, the commodity had hit a high of ₹8,751 and a low of ₹8,690 for the day.
In the last trading session, both major benchmark oil prices had surged by approximately 5%. However, some of these gains were later reversed as investors analyzed conflicting signals from Washington and Tehran regarding the negotiations.
U.S. President Donald Trump stated that he had not received any information indicating that Iran had halted talks with the U.S. He mentioned that discussions between the two nations are ongoing.
However, some reports suggest that Tehran has temporarily suspended indirect talks with the U.S.
Trump also expressed hope for a potential agreement to extend the ceasefire and reopen the Strait of Hormuz by next week. He added that he would not have any significant objections if the talks were to end.
Meanwhile, Lebanon has announced a partial ceasefire between Hezbollah and Israel.
In the currency market, the Indian rupee opened at 95.05 against the U.S. dollar on Tuesday, compared to a closing rate of 95 on Monday.
Geopolitical tensions and concerns over a weak monsoon have caused the domestic stock market to open lower. The BSE Sensex opened down 322 points or 0.43% at 73,945.20, while the Nifty50 started trading down 153.45 points or 0.65% at 23,229.15.
Asian stock markets showed mixed trends. Japan’s Nikkei index was down by 2%, while South Korea‘s KOSPI fell nearly 3%. However, Hong Kong’s Hang Seng index showed an increase of about 1%.
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