Crude Oil Prices Jump 2.5% Amid US-Iran Peace Talks Uncertainty, Brent Forecast Revised Upward to $90 by Goldman Sachs

Crude Oil Prices Surge Amid Ongoing Iran Conflict

Crude oil prices climbed on Monday, 27 April, after attempts to revive peace negotiations over the Iran conflict stalled, while the Strait of Hormuz remained largely blocked, prolonging Middle East disruptions that have unsettled global markets.

Brent crude surged as much as 2.5% to $107.97 per barrel, and West Texas Intermediate rose towards $97, before paring some gains after Axios reported that Tehran has presented a new proposal to the US to reopen the strait. Back home, crude oil prices on the Multi Commodity Exchange (MCX) also witnessed a similar upward movement, gaining as much as 2.5% to ₹9,049 per barrel.

The ongoing conflict has severely impacted supplies of crude oil, fuel, natural gas, and fertilisers, fueling fears of an inflation surge. Although a ceasefire has largely been in effect since early April, a blockade of the Strait of Hormuz by both the US and Iran has reduced daily shipping traffic through the crucial route to almost zero.

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According to Axios, Iran—via Pakistani intermediaries—has proposed a deal to the US to reopen the strait and end the conflict, with nuclear negotiations deferred to a later stage. US President Donald Trump is set to meet his top national security and foreign policy advisers on Monday to review the deadlock.

The conflict has now entered its ninth week, pushing up energy prices, causing shortages of essentials like liquefied petroleum gas in India, and forcing airlines to reduce flights. The International Energy Agency has described the situation as the largest supply shock on record.

Global brokerage firm Goldman Sachs has increased its oil price outlook for the fourth quarter, citing reduced output from the Middle East. Meanwhile, Kaynat Chainwala, AVP - Commodity Research, Kotak Securities, believes that current tensions sustain upward pressure, potentially pushing WTI toward the $100–$105/bbl level and MCX prices to ₹9400–9900/bbl.

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