Brent crude oil prices remained largely steady on Tuesday, trading around the $85-per-barrel mark after US President Donald Trump said he had called off a planned military strike on Iran. The announcement eased concerns over a potential disruption to global oil supplies, helping stabilise crude markets after sharp declines in the previous trading session. At the latest check, Brent crude futures were trading slightly higher at $84.20 per barrel, while investors continued to monitor developments in the Middle East.
Oil prices had fallen significantly on Monday after Trump said he decided to shelve the proposed military action following requests from Tehran and several other Middle Eastern countries. The move reduced fears of an escalation in regional tensions, prompting a broad sell-off in crude. West Texas Intermediate (WTI) futures declined around 5% to settle at $80.34 per barrel, while Brent crude dropped 4.7% to close at $83.77 per barrel. The retreat came after crude prices had climbed in recent weeks amid concerns over geopolitical risks affecting global energy supplies.
The movement in international crude oil prices is closely watched in India, where more than 85% of the country's crude oil requirement is met through imports. Any sustained increase in global oil prices raises India's import bill, puts pressure on the rupee, and contributes to higher inflation. Rising crude prices also increase input costs for industries and transportation, potentially affecting the prices of essential goods and services across the economy.
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Higher international crude prices can also influence domestic fuel prices over time. Petrol and diesel rates in India are revised by oil marketing companies based on global crude prices, exchange rates, refining costs, and other market factors. Although retail fuel prices do not always move immediately in line with international oil markets, prolonged increases in crude prices generally create pressure for upward revisions, particularly if refiners face higher procurement costs.
As of August 4, there has been no fresh nationwide revision in petrol and diesel prices by the country's major oil marketing companies. Fuel prices continue to vary across cities due to differences in state taxes, value-added tax (VAT), freight charges, and local levies. Consumers in metropolitan cities such as Mumbai, Bengaluru, Chennai, Kolkata, Delhi, and Hyderabad are advised to check the latest retail rates through the official websites or mobile applications of Indian Oil, Bharat Petroleum, and Hindustan Petroleum, as prices may differ from one location to another.
Market participants will continue to monitor geopolitical developments in the Middle East, along with production decisions by major oil-producing nations and global demand trends, for further direction in crude prices. For India, sustained stability in international oil prices would help contain inflationary pressures and reduce the likelihood of another round of domestic fuel price increases, while any renewed escalation in geopolitical tensions could quickly reverse the recent decline in crude oil markets.
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