Oil Prices Fall Over 3% as US Signals Possible Easing of Iranian Crude Sanctions
Mumbai, March 20: Global crude oil prices declined sharply on Friday after the United States indicated a potential easing of sanctions on Iranian oil, raising expectations of increased supply in the global market.Brent crude futures dropped as much as 3.39 percent to touch an intraday low of $104.96 per barrel. Similarly, US West Texas Intermediate crude fell 3.22 percent to a day-low of $92.47 per barrel.
US संकेत on Iranian Oil Supply Weighs on Crude Markets
The decline followed remarks by US Treasury Secretary Scott Besant, who suggested that Washington may relax restrictions on Iranian crude already in transit. The move is aimed at stabilizing global oil prices amid ongoing volatility.In an interview with Fox Business Network, Besant stated that the US could “un-sanction” nearly 140 million barrels of Iranian oil currently at sea in the coming days. He also noted that Iranian crude exports from the Gulf have continued, and additional flexibility could be considered depending on evolving market conditions.
Besant further clarified that the US is not targeting Iran’s energy infrastructure and retains multiple tools to influence global oil supply.
Oil Prices Remain Elevated Despite Recent Correction
Despite Friday’s decline, crude oil prices have witnessed a sharp rally in recent weeks due to geopolitical tensions in West Asia. As the conflict entered its 21st day, Brent crude surged nearly 40 percent, rising from $77.74 on March 2 to $108.65 on March 19.Market participants indicated that easing concerns over potential disruptions to Iran’s energy infrastructure, along with early signs of de-escalation in the region, have led to a reduction in the risk premium embedded in oil prices.
However, crude prices continue to remain elevated, sustaining pressure on currencies such as the Indian rupee.
Equity Markets Rebound Amid Cooling Oil Prices
The decline in oil prices also supported a rebound in equity markets. Domestic benchmark indices traded over 1 percent higher in early deals on Friday.The BSE Sensex rose nearly 1,000 points, or 1.34 percent, by 9:46 a.m., while the NSE Nifty advanced around 300 points, gaining 1.38 percent.
Global Markets Show Mixed Trends
Global equity markets remained mixed. Wall Street ended lower in the previous session, with the S&P 500 declining 0.27 percent and the Nasdaq slipping 0.28 percent, reflecting cautious investor sentiment amid ongoing geopolitical and economic developments.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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