Crude oil prices slip up to 3 pc from day highs as US-Iran de-escalation hopes rise

International crude oil prices slipped on Wednesday after early gains declining nearly 3 per cent from intraday highs as hopes of easing tensions between the United States and Iran weighed on market sentiment reported news agency IANSBrent and WTI Retreat After Early RallyBrent crude futures dropped to an intraday low of USD 10279 per barrel down about 29 per cent from the dayrsquos high of USD 10586 At the time of reporting Brent was trading around USD 10319 per barrel nearly 1 per cent lower reported IANSSimilarly US West Texas Intermediate WTI crude declined by as much as 219 per cent from its intraday high of USD 10331 settling near USD 10125 per barrel The fall came after both benchmarks had posted strong gains earlier in the day reported IANSVolatility Driven by Geopolitical DevelopmentsAnalysts attributed the sharp price swings to ongoing geopolitical developments and mixed macroeconomic signals Market sentiment improved after US President Donald Trump indicated that the US could potentially step back from the conflict within two to three weeks reported IANSIran has also signalled a conditional willingness to ease hostilities raising expectations of a possible deescalation However analysts cautioned that uncertainty over the timing and structure of any agreement continues to keep markets volatileStrait of Hormuz Remains Critical ConcernDespite the decline supplyside risks remain significant particularly around the Strait of Hormuz a key global oil transit route through which nearly onefifth of the worldrsquos crude supply passes reported IANSAny disruption in this region could tighten supply and push prices higher again limiting the downside in oil marketsPrices Stay Elevated Above USD 100Oil prices have largely stayed above the USD 100 per barrel mark throughout March supported by geopolitical tensions and supply disruptions Analysts noted that while easing tensions have triggered some profitbooking the broader trend remains firm reported IANSGlobal factors including mixed economic data from major economies such as the US and China along with currency movements continue to influence crude price trendsIndian Markets Gain on Positive SentimentThe easing in crude prices boosted investor sentiment in domestic equity markets Benchmark indices such as the BSE Sensex and Nifty 50 rose by up to 3 per cent in early trade tracking positive global cues reported IANSUncertainty Continues to LoomWhile hopes of deescalation have led to a pullback in oil prices analysts believe uncertainty remains high Risks related to supply routes and geopolitical stability could continue to drive volatility in the coming daysMarkets are expected to remain sensitive to further developments in the USIran situation with even minor updates likely to impact global oil prices significantlyWith inputs from IANS