Global crude oil prices fell drastically by 3% on Thursday as the market opened to an interim deal in place by the US and Iran aimed at ending hostilities, reopening the Strait of Hormuz and starting negotiations on sanctions relief, raising expectations of improved oil supplies in global market
Brent crude futures was down 89 cents, or 1.12 percent, at $78.66 a barrel as of 00:05 GMT, and US West Texas Intermediate fell 98 cents, or 1.28 percent, to $75.81 a barrel.
The decline stemmed from a positive response by investors to the signing of a 14-point memorandum of understanding (MoU) between US President Donald Trump and Iranian President Masoud Pezeshkian.
The agreement had a major agreement on the oil market as traders began pricing oil based on a possibility that Iranian crude exports would increase reducing risks in global energy supplies. The agreement which includes the reopening of the Strait of Hormuz touted as the worlds most important shipping route. Initially for the period of 60 days the Iranian government has allowed the passage to be toll free following which the maritime authorities will impose a’fee’ on the vessels.
The Strait of Hormuz holds a significant place in the global trade network. It is strategic waterway that enables trade between Asia and the West. Any disruptions in the channel will typically impact global economy on a large scale typically pushing oil prices higher due to fears of supply shortages.
Meanwhile, Centre on Monday (June 15, 2026) increased the export duty on diesel to Rs 14 per litre and that on export of aviation turbine fuel (ATF) to Rs 12.5 per litre whilst keeping the levy on petrol unchanged at Rs1.5 per litre.