Oil prices up 1% as US-Iran ceasefire signals diverge

New Delhi: Global crude oil prices rose over 1% on Thursday as conflicting signals from the US and Iran on potential ceasefire talks kept markets on edge amid the ongoing West Asia war.

At 9.09 AM, the May contract of Brent on the Intercontinental Exchange was trading at $103.93, higher by 1.67% from its previous close. Similarly, the May contract of West Texas Intermediate on the Nymex rose 1.59% to $91.76 a barrel.

The uptick follows US President Donald Trump’s claim that talks with Iran were underway, which was dismissed by Tehran. Iran’s military accused Washington of negotiating with itself to mask battlefield setbacks.

“Has the level of your inner ⁠struggle reached the stage ⁠of you negotiating with yourself?” Ebrahim Zolfaqari, spokesperson for the unified command of Iran’s armed ⁠forces, Khatam al-Anbiya Central Headquarters, said on Wednesday, according to Iran’s semi-official Fars news agency. “Don’t call your failure an agreement.”

Although it has not accepted the 15-point plan proposed by the US, the White House has said talks with Iran are proceeding apace, said a CNN report. Citing US administration officials, it added that the US is working to arrange a meeting in Pakistan to discuss an off-ramp.

Further, in an interview with state-run Islamic Republic of Iran Broadcasting (IRIB) network, Iranian foreign minister Abbas Araghchi acknowledged that messages for negotiations have been sent by the US through mediators.

“The fact that they are talking about negotiation now is exactly an admission of defeat,” Araghchi said. “The fact that messages are being sent and we respond with warnings or state our positions is not called negotiation or dialogue; it is an exchange of messages,” he added.

The war has disrupted about 20% of the oil and gas supplied from West Asia through the Strait of Hormuz, affecting the global economy and energy-importing countries like India.

India’s crude basket stood at $147.24 per barrel on 24 March, easing from $157.04 a day earlier. So far in March, the Indian basket has averaged at $123.15 per barrel, compared to $69.01 last month.

The government has maintained that although there are concerns about liquefied petroleum gas supplies, the country is in a comfortable position in terms of crude oil, petrol and diesel stocks, with rising imports from alternative sources.

All refineries are operating at high capacity with adequate crude inventories, and sufficient stocks of petrol and diesel are being maintained, said Sujata Sharma, joint secretary, marketing and oil refinery addressing the media on the fuel stock scenario on Wednesday.

Noting that panic buying was reported in some areas due to rumours, resulting in unusually high sales and heavy crowding at retail outlets, she said that there are adequate stocks of petrol and diesel available at all petrol pumps.

Indian Oil Corp chairman Arvinder Singh Sahney also reassured consumers that fuel supplies remain stable.

“We would like to assure all citizens that there is no shortage of petrol or diesel. IndianOil outlets nationwide are well-stocked and functioning normally. Unverified rumours can lead to unnecessary panic and supply disruptions. Please avoid panic buying and trust only official sources. Let us act responsibly and support seamless fuel availability for all,” Sahney wrote in a post on X.