Crude Oil Slides on US-Iran Talks Hope

New Delhi, May 27 (PTI) Crude oil prices fell more than 3 per cent in futures trade on Wednesday as investors tracked diplomatic engagement between the US and Iran despite recent military strikes in the Gulf region.

On the Multi Commodity Exchange, oil prices for June delivery went lower by Rs 274, or 3.04 per cent, to Rs 8,740 per barrel in a business turnover of 11,539 lots.

Crude oil prices edged lower on Wednesday as investors balance tentative signs of diplomatic progress against renewed military tensions and unresolved geopolitical flashpoints that continue to cloud the outlook for any near-term resolution, brokerage firm Kotak Neo said.

In the international markets, Brent crude futures for August delivery slipped 2.31 per cent to USD 94.44 per barrel, while West Texas Intermediate (WTI) declined 3 per cent to USD 91.14 per barrel.


According to reports, the US and Iran are continuing their indirect negotiations aimed at reopening the Strait of Hormuz and ending the ongoing conflict despite recent US military strikes on targets in southern Iran.

Earlier, US military had defended the strikes saying the operations were intended to protect American troops from threats posed by Iranian forces.

Iranian media also reported explosions in Bandar Abbas city and nearby coastal areas close to the Strait of Hormuz.

On the diplomatic front, US Secretary of State Marco Rubio said any agreement between Washington and Tehran could still take several days to finalise.

Meanwhile, President Donald Trump said on Truth Social that negotiations with Iran were "proceeding nicely".