Global crude oil prices eased sharply on Monday after the US signalled a temporary pause in military escalation with Iran. Prices in the international market dropped to around $100 per barrel after Donald Trump announced that the US would refrain from targeting Iran’s power infrastructure for the next five days. In a social media post, Trump said he had instructed the Department of War to postpone “any and all” military strikes against Iranian power plants and energy infrastructure. However, Iran denied holding any such dialogue with the US.
Trump had earlier issued a 24-hour ultimatum to Iran to reopen the Strait of Hormuz to global shipping, warning that failure to comply would result in attacks on critical infrastructure.
Following the announcement, benchmark Brent Crude prices, which had been hovering between $110 and $115 per barrel, dropped significantly to around $103 per barrel. At 7:04 PM IST, Brent was trading at $102.4 per barrel. Brent crude futures also slumped over 14% from Friday’s close, touching an intraday low of $96 per barrel — its first dip below $100 since March 11.
India said it is keeping a watch on the developments. “Yes, we are closely following these developments, as we do,” said Randhir Jaiswal, additional secretary in the Ministry of External Affairs.
Meanwhile, some movement has resumed in energy shipments through the Strait of Hormuz. Two LPG tankers have begun transit carrying liquefied petroleum gas, although officials did not disclose many details about cargos. Rajesh Kumar Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways, confirmed the movement of the tankers Pine Gas and Jag Vasant.
However, a significant number of Indian vessels remain stranded in the region. According to the shipping ministry, 22 Indian-flagged ships are currently stuck near the Strait of Hormuz. These include six LPG carriers, one LNG tanker, four crude oil tankers, one chemical and product carrier, three container ships, and two bulk carriers, among others. The cargo mix includes one LNG shipment for Petronet LNG, seven LPG cargoes—four for Bharat Petroleum Corporation Limited (BPCL) and three for Hindustan Petroleum Corporation Limited (HPCL)—and four crude oil consignments, including two for Indian Oil Corporation, and one each for Reliance Industries and BPCL.
On the domestic front, the government has said around 1.9 lakh consumers have shifted from LPG to piped natural gas (PNG) so far, while approximately 3.5 lakh new PNG connections — both domestic and commercial — have been added since the crisis began. Addressing concerns over reduced LPG refill quantities, officials clarified that reports suggesting a cut to around 10 kg in standard 14.2-kg cylinders are highly speculative.