New Delhi, April 1 International crude oil prices on Wednesday trimmed early gains and fell nearly 3 per cent from the day's high, as optimism over a possible easing of the US-Iran conflict weighed on markets.
Brent crude futures slipped to an intraday low of $102.79 per barrel, down about 2.9 per cent from the day's high of $105.86. At the time of writing, Brent was trading around 1 per cent lower at $103.19 per barrel.
Similarly, US West Texas Intermediate (WTI) crude dropped as much as 2.19 per cent from its intraday high of $103.31, and was marginally lower at $101.25 per barrel.
The decline comes after a strong rally earlier in the session. In morning trade, Brent had risen 1.81 per cent to $105.86 per barrel, while WTI was up 1.90 per cent at $103.31.
According to analysts, markets are witnessing heightened volatility amid shifting geopolitical signals and macroeconomic cues.
"Sentiment has improved after US President Donald Trump indicated that the US could exit the conflict within two to three weeks, while Iran has also signalled conditional willingness to end hostilities. However, uncertainty around the timing and structure of any agreement, along with the risk of disruption in the Strait of Hormuz, is keeping markets on edge," they said.
Analysts added that while bullion prices have rebounded following a softer dollar, ongoing global uncertainties and mixed economic data -- particularly from the US and China -- are maintaining upward pressure on crude oil prices.
Oil prices have largely remained above the $100 per barrel mark through March, supported by disruptions in the Strait of Hormuz — a critical chokepoint that handles nearly one-fifth of global crude oil shipments.
The volatility in oil prices follows remarks by US President Donald Trump indicating that the conflict with Iran could ease within the next two to three weeks. He also suggested that a formal deal with Tehran may not be necessary to bring hostilities to an end.
Analysts said that while easing geopolitical tensions have triggered some profit-booking, uncertainty over the timing of any resolution and risks to supply routes continue to keep crude prices elevated.
Meanwhile, domestic equity markets reacted positively to the easing sentiment with benchmark indices Sensex and Nifty rising up to around 3 per cent, tracking global cues in early trade.
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