Oil prices fell 5% as hopes of a ceasefire in West Asia reduced concerns over supply disruptions. Brent crude has dropped below $100. It further signals easing geopolitical tensions and improved sentiment in global energy markets. Crude prices have now eased from last week’s highs of around $119 per barrel.
International oil prices declined around 5% on Wednesday (March 25, 2026) morning amid hopes of a ceasefire in the war between the US, Israel, and Iran. At 8:15 AM, the May contract of benchmark Brent crude on the Intercontinental Exchange was trading at $98.87 per barrel. It was down 5.59% from its previous close. Similarly, the May contract of West Texas Intermediate on the NYMEX fell 4.33% to $88.31 per barrel.
Market volatility has pushed up India’s crude import costs.As of 23 March, the Indian crude basket stood at a record $157.04 per barrel. So far in March, it has averaged $121.64 per barrel, significantly higher than $69.01 in February.
The Indian basket comprises a mix of sour grade crude (Oman and Dubai average) and sweet grade crude (Brent dated) in a ratio of 78.71:21.29.
Earlier, the US president reiterated that talks are underway, and reports suggested Washington has shared a 15-point plan to end the war. Iran has denied any direct negotiations with the US. US president Donald Trump on Tuesday said that Vice President JD Vance and Secretary of State Marco Rubio are leading negotiations with Iran.
Despite these signals, hostilities remain intense. According to a report early on Wednesday, US and Israeli attacks on Iran continued. One strike on Tehran killed 12 people and injured 28 others.
Iran and Hezbollah have also launched a fresh wave of missiles at Israel, targeting Tel Aviv and northern regions. These attacks have killed at least one person and injured several others.
"The market is trading the headlines at the moment," said Kerry Craig, global market strategist at J.P. Morgan Asset Management in Melbourne. "So there's a positive tone. The difficulty is now...there are still unknowns about where this actually goes from here and whether there's anything material in terms of a ceasefire."
The ongoing conflict and blockae of the Strait of Hormuz carry major implications for India. An increase of $1 per barrel sustained over a year can raise India’s annual import bill by about Rs. 16,000 crore. It can add pressure on inflation and fiscal balances.
Prime Minister Narendra Modi said the government is closely monitoring the situation and working strategically to address issues during his speech in the Rajya Sabha on Tuesday.