NEW DELHI: Crude oil prices in the international market dropped sharply following the announcement of a ceasefire by the United States in the ongoing West Asia conflict.
Brent crude prices fell by more than 13%, trading at $94.94 per barrel—down 13.62% or $14.88—at 7:04 AM Indian Standard Time. Meanwhile, US WTI crude declined by 14.60%, or $16.49, to $96.46 per barrel.
The conflict, now in its 35th day, had pushed crude prices to nearly double their pre-war levels.
Brent crude, which was trading between $62 and $65 per barrel before the conflict, surged to a high of $119 per barrel and had been hovering above $110 in recent weeks.
US President Donald Trump, in a post on Truth Social, announced a two-week ceasefire in the conflict. He stated that he would suspend bombing and attacks on Iran for a limited period.
“..I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East…”
The conflict had severely disrupted cargo movement through the Strait of Hormuz, a vital chokepoint that accounts for nearly 20% of global oil and gas supplies. In addition to the blockade, Iran targeted several oil and gas facilities in the region, further exacerbating supply concerns. Production was also affected in some countries due to storage constraints, as exports were hindered by the disruption in the Strait.
India, which depends on imports for nearly 90% of its crude oil needs, is particularly vulnerable to such disruptions. The country sources nearly 90% of its total LPG imports through routes passing via the Strait of Hormuz.
During the month-long crisis, India had to increase the prices of aviation turbine fuel (ATF), premium petrol and diesel, as well as domestic and commercial LPG, to absorb the impact of rising crude prices and supply disruptions of gas in the country. According to estimates, a sustained increase of $1 per barrel in crude prices can raise India’s annual import bill by approximately Rs 16,000 crore.
Oil marketing companies raised the prices of aviation turbine fuel (ATF), premium petrol, diesel, and both domestic and commercial LPG cylinders. ATF prices were increased by around 8.5%. In the national capital, jet fuel now costs Rs 1,04,927 per kilolitre, compared to Rs 96,638 in March.
Commercial LPG prices were also increased by around Rs 200, marking the second hike within a month. In Delhi, a 19-kg LPG cylinder now costs Rs 2,078.50, up Rs 195.50 since the last revision on March 7.
However, petrol and diesel prices remain unchanged, as the government reduced excise duties to shield consumers. Additionally, the government has imposed an export duty of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel (ATF) to discourage exports and ensure adequate domestic supply.
State-run oil companies such as Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) have also postponed routine maintenance shutdowns at some of their refineries to maintain uninterrupted fuel supply across the country.
