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Informist, Wednesday, Apr. 8, 2026

 

--ICE Brent June crude oil futures contract plunges 14.9% to $92.99/barrel

--WTI May crude oil futures contract plunges 16% to $94.82 per barrel 

--MCX April crude oil futures contract plunges 17.5% to INR 8,796 per barrel 

 

MUMBAI – Futures contracts of crude oil on the Multi Commodity Exchange fell further on Wednesday, down 17.5%, as concerns over supply disruption eased following the US and Iran agreeing on a two-week ceasefire that would also see the reopening of the Strait of Hormuz. 

 

In a social media post Wednesday, US President Donald Trump said the US "will be helping with the traffic buildup in the Strait of Hormuz" and will be "hangin' around" in the region "to make sure that everything goes well." The president's post didn't discuss the possibility that Iran would continue charging certain ships a toll to pass through the strait. Trump hailed what he called a "big day for World Peace!" He predicted a "Golden Age of the Middle East" and said, "Big money will be made."

 

The post came after the US agreed to a temporary ceasefire with Iran, paving the way for cessation of US-Israeli strikes in exchange for the reopening of the Strait of Hormuz, Al Jazeera reported. Iran's Foreign Minister Abbas Araghchi said Tehran has also accepted the truce, adding that safe passage through the Strait of Hormuz during the two weeks would be possible in coordination with Iranian armed forces, the report said.

 

More oil tankers stranded near the strait may be able to pass through the waterway during the ceasefire, providing some relief for markets in the coming weeks, the BBC reported, quoting analyst Saul Kavonic from financial services firm MST Marquee as saying. Despite the conflict, some ships have passed through the Strait of Hormuz, although far fewer than usual.

 

However, the market is still in backwardation stage, with prompt spreads remaining high, observers said. This reflects continued uncertainty as West Asian production is unlikely to fully recover without confidence in a lasting peace. For now, crude prices are expected to remain sensitive to developments around ceasefire compliance, diplomatic progress, and the security of shipping through the Strait of Hormuz, Kaynat Chainwala, AVP Commodity Research, Kotak Securities said in a note.

 

"Analysts view the ceasefire as a strategic pause rather than a resolution, with both sides seeking leverage in upcoming negotiations. While optimism has improved sentiment, the risk of renewed escalation remains high, keeping energy markets sensitive to further developments," said Amit Gupta of Kedia Advisory. "The ceasefire offers temporary relief to markets, but fragile geopolitical dynamics mean oil prices and global sentiment will remain highly sensitive to any renewed escalation."

 

At 1323 IST, the most-traded April futures contract on the MCX was down 16.8% at INR 8,880 per barrel. The ICE Brent June crude oil contract was down 13.2% at $94.85 per barrel, while the WTI May crude oil contract was down 15.2% at $95.8 per barrel.  End
 

US$1 = INR 92.58

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Shreya Shetty and Abhijit Doshi

Edited by Vandana Hingorani

 

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