Crude oil prices slip 1 pc amid US-Iran ceasefire extension reports
New Delhi, May 29
Global crude oil prices fell 1 per cent in early trade on Friday as reports claim that the United States and Iran had agreed to a 60‑day memorandum of understanding to extend the ceasefire.
At 11:15 am, the international oil benchmark Brent crude traded at $92.66 a barrel, down 1.12 per cent, while US West Texas Intermediate declined 1.18 per cent to $87.86.
Reports claim that the 60‑day MoU would state shipping through the Strait of Hormuz would be unrestricted, according to US officials.
In addition, it would require Iran to remove mines within 30 days and end toll collection from the Strait.
US naval blockade would be lifted in proportion to the restoration of commercial shipping, the officials said, as per the report, adding that the deal had not yet received final approval from US President Donald Trump. Iran has also not confirmed its acceptance of the MoU.
Oil markets saw a volatile session on Thursday after prices jumped due to US strikes on a military site in Bandar Abbas.
However, markets remain keen on developments around the Strait of Hormuz, a key chokepoint for roughly a fifth of global oil and liquefied natural gas trade.
Under the direction of the government, the public sector oil companies are currently absorbing losses on the sale of petrol, diesel, and LPG to the tune of Rs 550 crore per day as they have refrained from passing on the full increase in global prices to protect domestic consumers, the Ministry of Petroleum and Natural Gas said earlier this week.
The ministry said supplies of crude, petrol and diesel remained adequate but flagged localised shortages due to panic buying.
The government has already cut petrol and diesel excise by Rs 10 per litre on March 27, 2026, and Indian retail prices have risen by only 8 to 9 per cent since the crisis began, against 20 to 67 per cent in neighbouring economies.
— IANS
Reader Comments
The situation in the Strait of Hormuz is precarious. If the US and Iran can't maintain this MoU, we could see prices skyrocket again. Our government has done well to keep retail prices relatively stable (only 8-9% rise vs 20-67% in neighboring countries), but we need a long-term strategy to reduce dependence on this volatile region. Strategic petroleum reserves and renewable energy are the way forward!
I appreciate the government not passing on the full price hike to consumers, but Rs 550 crore per day in losses? That's unsustainable! Either we need to rationalize taxes or diversify our energy mix. Also, panic buying is creating artificial shortages. People should trust the government's assurance that supplies are adequate. Patience and awareness are key.
Good to see the US and Iran taking a step back from the brink. But remember, this is a temporary 60-day MoU, not a permanent solution. The real issue is the geopolitical instability affecting global supply chains. India must use this window to aggressively push for domestic production and electric mobility. Every drop of oil saved is a step towards energy independence! 🇮🇳
As a common citizen, I see petrol prices barely moving despite this news. The government talks about absorbing losses, but what about the high excise duty we already pay? The March 2026 cut of Rs 10 per litre was welcome, but with inflation everywhere, every rupee counts. Let's hope this ceasefire brings real relief, not just headlines.
N Naveen S This is a We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.