Mumbai: International crude oil prices on Tuesday pared their gains, falling up to 3 per cent on hopes of renewed US-Iran dialogue to end the conflict, which helped ease concerns over supply risks linked to the US blockade of the Strait of Hormuz.
Global benchmark Brent crude futures traded at $96.6 per barrel, down 2.77 per cent, while US West Texas Intermediate (WTI) crude declined more than 3 per cent to $95.69, hitting an intraday low in early trade.
In the previous session, oil prices also settled in negative territory, with Brent crude down 3.64 per cent at $99.36 and WTI crude closing at $96.57, lower by 7.79 per cent.
Earlier, crude prices had witnessed strong gains. On April 12, the oil benchmarks had surged more than 8 per cent after US President Donald Trump announced a blockade of Iran’s ports.
However, reports on Monday indicated that the US military’s blockade of the Strait of Hormuz could extend eastwards to the Gulf of Oman and the Arabian Sea.
Meanwhile, ship-tracking data showed that two vessels turned around in the strait after the blockade came into effect.
The dialogue between the US and Iran remains active. Trump also said on Monday that Iran “wants to make a deal”.
Following this, bullion prices rose, with gains of up to 2 per cent. COMEX gold increased 0.74 per cent to $4,802.8, while COMEX silver advanced 2 per cent to $77.16 per ounce.
On the domestic front, equity markets remained closed on account of Dr B.R. Ambedkar Jayanti.
The Multi Commodity Exchange (MCX) was also closed in the morning session, and will resume trading in the evening session from 5 pm to 11:30 pm.
Meanwhile, Bitcoin prices surged to a four-week high as risk assets rallied on optimism that the US could reach an agreement with Iran to resolve the conflict.
(IANS)
