Oil prices down over 13 pc, GIFT Nifty rises as Trump pauses strikes on Iran power infra
New Delhi, March 23
Global oil prices plunged sharply on Monday, with Brent crude falling over 13 per cent, after US President Donald Trump announced a temporary halt on military strikes against Iran and said talks between the two countries were "productive".
Brent crude futures dropped by around $17, or nearly 15 per cent, to touch a session low of $96 per barrel, while US West Texas Intermediate crude fell about $13, or 13.5 per cent, to $85.28.
The sharp fall came as fears of supply disruption eased following signs of de-escalation in the ongoing conflict.
US President Donald Trump said he has instructed the Department of Defense to postpone planned airstrikes on Iranian power plants and energy infrastructure for five days.
He said the decision was taken after "very good and productive conversations" between the United States and Iran over the past two days.
Gift Nifty futures also followed suit and surged to 23,533.50 as against the last close of 22,465, recording a 1,068.5-point or 4.75 per cent upside.
Around 5.20 pm, the Gift Nifty futures were 853.50 or 3.80 per cent higher at 23,318.50.
In a post on Truth Social, Trump said the pause in military action depends on the progress of ongoing discussions aimed at resolving hostilities in the Middle East.
He indicated that the decision was based on the "tenor and tone" of the talks, suggesting a possible diplomatic breakthrough.
Gold and silver prices in both the MCX and international markets bounced back sharply after Trump's announcement to delay military strikes on Iranian power plants.
In the global market, spot gold trimmed its losses and was down 2.6 per cent, recovering from a steeper 5 per cent decline earlier.
On the domestic front, MCX gold also saw a strong rebound, cutting its losses to around 3 per cent after falling nearly 10 per cent earlier in the session.
— IANS
Reader Comments
Interesting to see the immediate market reaction. The GIFT Nifty surge is a strong indicator of investor sentiment. A stable Middle East is crucial for global trade, and India benefits directly.
Good news for our economy. High oil prices are a major drain on our forex reserves and increase the current account deficit. This de-escalation is a welcome development for India's macroeconomic stability.
While the market reaction is positive, we must be cautious. These geopolitical situations can change overnight with a single tweet. Our government should use this window to build strategic reserves.
The gold price bounce-back is also noteworthy. It shows that while immediate war fears are down, the underlying uncertainty remains. People are still looking for safe havens. Smart move by Trump to pause, but let's see if talks are actually productive.
A 13% drop is massive! This should immediately reflect in lower fuel prices. But will the oil marketing companies and the government pass on the full benefit to consumers? That's the real question. We've seen delays before.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.