Crude oil prices crashed 9% after a temporary US-Iran ceasefire
Brent crude fell below $100 per barrel following a 5-day strike postponement
MCX oil futures hit a lower circuit, dropping to ₹8,431 per barrel
Crude oil prices fell sharply by around 9% on Monday after US President Donald Trump announced postponing the potential military strikes on Iranian power plants and energy infrastructure.
The decision signalled a temporary easing of geopolitical tensions, which had previously driven prices higher on fears of supply disruptions.
2 March 2026
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Oil Prices Drop
On the Multi Commodity Exchange of India, crude oil for April delivery initially opened at an intraday high of ₹9,620 per barrel, marking a gain of about 4% or ₹362. However, prices later reversed sharply, hitting the lower circuit limit after plunging ₹827, or 9%, to ₹8,431 per barrel, according to exchange data.
A similar trend was observed in global markets. West Texas Intermediate futures for May delivery declined by $7.24, or 7.37%, to $90.99 per barrel, while Brent crude for the same contract dropped $6.70, or 6.30%, to $99.71 per barrel in New York.
What Led the Correction?
The sharp correction came after indications of de-escalation in tensions between the US and Iran.
In a post on Truth Social, Trump reportedly said he had instructed the Department of War to postpone all military strikes on Iranian energy infrastructure for five days, subject to the success of ongoing diplomatic engagements.
He then added that recent conversations between Washington and Tehran had been “very good and productive,” raising hopes for a broader resolution of hostilities in West Asia.
US-Iran Tensions
The development marked a shift from earlier tensions. Just days before, Trump had warned Iran to reopen the Strait of Hormuz, a critical global oil transit route, within 48 hours or face military action targeting its energy facilities.
In response, Tehran had threatened to retaliate by targeting key infrastructure across West Asia, including power and water systems, as well as assets linked to American interests.
According to analysts, the temporary easing of tensions has reported;y reduced concerns over potential supply disruptions, prompting investors to book profits after recent gains in oil prices. This shift in sentiment led to a sharp decline in crude prices across both domestic and international markets.
