New Delhi: Global crude oil prices dropped sharply on hopes of a possible peace agreement between the United States and Iran, easing fears of disruptions in oil supply from the Middle East.Brent crude fell below the $100 per barrel mark, while WTI crude also saw a major decline.
The fall in prices lifted stock markets and strengthened oil-linked currencies, including the Indian rupee.Experts said reports of progress in talks between the US and Iran have reduced concerns over the future of the Strait of Hormuz, an important route for global oil transport.
However, analysts noted that several key issues between the two countries are still unresolved.Following the drop in crude prices, shares of Indian oil companies such as Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation rose by up to 6% as investor confidence improved.
Market experts believe lower oil prices could provide relief to oil-importing countries like India by reducing fuel costs and inflation pressure.