rude oil prices in the international market fell below $90 per barrel on Friday after the US President announced that he had cancelled the "planned strikes" on Iran and said that a deal with Tehran had been approved and would be signed "shortly."
Brent crude futures were trading at $88.11 per barrel at 7:03 pm IST, while US West Texas Intermediate (WTI) crude was trading at $85.26 per barrel.
The announcement came after the US President had earlier threatened to hit Iran "very hard" with fresh strikes and floated the possibility of taking control of Kharg Island, home to one of Iran's key oil export terminals.
However, an Iranian Foreign Ministry spokesperson said the deal had not yet been finalised, while accusing the US of making "excessive demands" and introducing new conditions into the negotiations.
The latest developments come after tensions escalated earlier this week, with Iran announcing a complete closure of the Strait of Hormuz, a critical shipping route for global oil supplies.
Meanwhile, shares of oil marketing companies (OMCs) — Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) — gained after the announcement, as lower crude prices are expected to improve their marketing margins.
IOCL shares closed at Rs141.20, up 5.18 per cent. HPCL shares ended at ₹389.70, gaining 6.56 per cent, while BPCL shares closed at Rs302.50, up 5.64 per cent, or Rs16.15 per share.