Crude falls about 5% as U.S.-Iran de-escalate; India to stop buying Russian oil
Oil prices slid on Monday as geopolitical tensions between the U.S. and Iran eased, prompting traders to lock in profits after a recent jump in prices.
Meanwhile, President Donald Trump announced that he had reached a trade deal with India, and that the Asian nation would stop buying oil from Russia.
At 15:12 ET (20:12 GMT), Brent oil futures for April slid 4.3% to $66.32 a barrel and U.S. West Texas Intermediate crude fell 4.6% to $62.19 per barrel.
Oil prices rose to near six-month highs last week on concerns over more U.S. military action against Iran, while extreme cold weather in North America was also seen disrupting supplies.
The two benchmark contracts posted their biggest monthly increase since 2022 in January.
Trump on his Truth Social service said he had spoken to Indian Prime Minister Narendra Modi. According to Trump, Modi agreed to stop buying Russian oil.
India’s purchase of oil from Russia has been a flashpoint in trade negotiations with the U.S. before. Trump says the buying of oil is helping Russia keep up its war against Ukraine, while India has said it needs to import the oil to support its population.
U.S. President Donald Trump said over the weekend that Iran was “seriously talking” to his administration, comments that came shortly after Iranian officials said they were arranging for negotiations with the United States.
Trump had repeatedly threatened Iran with military action over a nuclear deal and ongoing protests in the country. He had also deployed a naval fleet to the Middle East.
This act ramped up concerns over fresh U.S. strikes against Iran, which could spur more geopolitical instability in the Middle East and disrupt oil production in the region. Crude prices had risen sharply as markets priced in a greater risk premium.
Recent weather-related disruptions in the U.S. also helped oil rise past concerns over weak global demand and a potential supply glut in 2026.
The Organization of Petroleum Exporting Countries and allies, known as OPEC+, left its oil production for March unchanged on Sunday, reaffirming the cartel’s decision to stop further output hikes despite a recent increase in oil prices.
The group – had hiked production by about 2.9 million barrels per day through 2025, but announced an indefinite pause on any further hikes in November.
OPEC+ did not provide any forward guidance on production, likely due to heightened uncertainty over the global economy and geopolitical issues.
Source: reuters.com
