New Delhi, March 23 (IANS). Global oil prices fell sharply on Monday, with Brent crude falling more than 13 percent after US President Donald Trump announced a temporary pause on military strikes against Iran and said talks between the two countries were ‘positive’.
Brent crude futures fell by about $17, or about 15 percent, to $96 per barrel. At the same time, West Texas Intermediate (WTI) also fell by about $ 13 or 13.5 percent to $ 85.28 per barrel.
This huge fall in prices came due to signs of easing of ongoing tensions in West Asia and reduced fears of supply disruptions.
US President Donald Trump said he has directed the Defense Department to postpone for five days the proposed air strikes on Iran’s power plants and energy infrastructure. He said that this decision has been taken after ‘good and positive talks’ between America and Iran in the last two days.
The effect of this news was also visible on the stock market. GIFT Nifty futures rose to 23,533.50, which is an increase of 1,068.5 points or 4.75 percent from the previous closing level of 22,465. At around 7:34 pm, GIFT Nifty was trading at 23,350.50, up 885.50 points or 3.94 per cent.
Trump said on the social media platform ‘Truth Social’ that the decision to stop military action will depend on the progress of negotiations. This indicates that there is a possibility of a diplomatic solution.
Meanwhile, a rise in the prices of gold and silver was also seen. The fall of gold in the global market reduced to 2.6 percent, whereas earlier it had fallen to about 5 percent.
In the domestic market, MCX Gold also made a strong recovery and reduced its fall to about 3 percent, whereas earlier it had fallen by about 10 percent.
–IANS
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