New Delhi, July 27 — Global crude oil prices witnessed heavy selling pressure on Monday, with key oil benchmarks plunging up to 7 per cent after the United States and Iran paused military strikes over the weekend.
International benchmark Brent crude fell more than 7 per cent or about $7 to hover around the $91-a-barrel mark.
On the other hand, US West Texas Intermediate (WTI) crude also declined over 7 per cent, shedding around $6.4 to trade below $85 a barrel.
The sharp decline came after Iran indicated it would refrain from further attacks as long as the US also halted military operations, fuelling expectations that the conflict could move towards a diplomatic resolution.
The latest correction follows a sharp rally in oil prices over the past three weeks, during which Brent briefly crossed the $100-a-barrel mark amid fears that the conflict would disrupt crude supplies through the Strait of Hormuz and the Bab el-Mandeb Strait -- two of the world's most critical energy shipping routes.
According to market experts, attacks claimed by Iran-backed Houthi forces on Saudi Aramco facilities at the Red Sea ports of Jizan and Yanbu underscore that geopolitical risks remain elevated.
Despite Monday's sharp correction, experts pointed out that crude oil prices are still nearly 40 per cent higher this month as supply disruptions spread from the Strait of Hormuz to the Red Sea, a vital route for Saudi oil exports, they said.
They also cautioned that supply chain risks have not completely disappeared, with shipping through the Strait of Hormuz yet to return to normal.
Moreover, the Indian rupee appreciated 41 paise at opening on Monday -- its biggest gain in almost two months -- to open at 96.15 against the US dollar, compared with the previous close of 96.56.