Crude Oil Prices Plunge 9% on US Pause of Strikes on Iran
New Delhi, March 23, 2026 – Crude oil prices reversed early gains on Monday, hitting the lower circuit after falling 9% to Rs 8,431 per barrel in futures trading, following US President Donald Trump’s announcement of a temporary halt to military strikes on Iran’s energy infrastructure.On the Multi Commodity Exchange (MCX), crude oil for April delivery initially surged Rs 362 (4%) to an intraday high of Rs 9,620 per barrel. However, prices later plummeted Rs 827 (9%) to the lower circuit limit of Rs 8,431 per barrel.
Crude prices also declined in overseas markets. West Texas Intermediate (WTI) May futures fell USD 7.24 (7.37%) to USD 90.99 per barrel, while Brent crude for May delivery dropped USD 6.70 (6.3%) to USD 99.71 per barrel in New York.
In a post on Truth Social, Trump stated he had “instructed the Department of Defense to postpone all military strikes against Iranian power plants and energy infrastructure for a five-day period”, adding that the pause is “subject to the success of ongoing meetings and discussions”. He noted that Washington and Tehran had “very good and productive conversations” aimed at a resolution of hostilities in the Middle East.
Earlier, Trump had warned Iran to reopen the Strait of Hormuz, a key global oil transit hub, within 48 hours or face strikes on energy infrastructure. Iran responded that it would target critical infrastructure across the region, including electricity, economic, industrial, and energy facilities if the US acted.
Analysts said the temporary de-escalation eased fears of supply disruptions, prompting profit-booking and a sharp correction in oil prices after recent gains.
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