Crude Oil Prices Reach Seventh Consecutive Day of Gains as US-Iran Peace Talks Remain Stalled

Global Oil Prices Continue to Rise as US-Iran War Uncertainty Persists

Oil prices surged on Tuesday, 28 April, amidst ongoing uncertainty over a resolution to the US-Iran war, as the critical Strait of Hormuz remained largely closed, severely restricting energy supplies from the key Middle East region to global markets.

Brent crude futures for June rose by 45 cents, or 0.4%, to $108.68 per barrel, after surging 2.8% in the previous session to their highest close since April 7. The benchmark has now advanced for seven consecutive sessions. Meanwhile, US West Texas Intermediate (WTI) crude for June climbed 58 cents, or 0.6%, to $96.96, following a 2.1% gain in the prior session. Back home, crude oil on the Multi Commodity Exchange (MCX) also witnessed a similar upward movement, with prices surging as much as 1% to ₹9,201 per barrel on Tuesday.

The US-Iran conflict, now in its second month, continues to fuel the rally in crude oil prices. US President Donald Trump has expressed dissatisfaction with Iran's latest proposal to end the conflict, US officials were quoted as saying by Reuters on Monday. According to the Reuters report, Iran indicated that Tehran's plan sidesteps discussions on its nuclear programme until the fighting stops and disputes over Gulf shipping are settled.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The situation remains at a stalemate, with Iran halting shipping through the Strait of Hormuz, a critical route that typically accounts for nearly 20% of global oil and gas supplies, while the US continues its blockade of Iranian ports. Earlier negotiations between the two sides broke down last week after unsuccessful direct talks. Ship-tracking data pointed to major disruptions in the region, with six Iranian oil tankers forced to reverse course due to the US blockade.

Analysts believe that current tensions will sustain upward pressure on crude oil prices. Kaynat Chainwala, AVP Commodity Research, Kotak Securities, notes that any credible confirmation that the Strait is reopening would likely trigger a sharp correction. "As long as Washington and Tehran continue to trade conflicting signals, oil prices will stay highly sensitive to any new developments and prone to sharp price swings in either direction," Chainwala said.

On the technical outlook, Ponmudi R, CEO of Enrich Money, observed that MCX Crude Oil is currently trading near the ₹8,990 zone, staging a sharp recovery amid geopolitical concerns and climbing back above the ascending trendline. Immediate resistance lies at ₹9,185; a sustained close above this level would bring the ₹9,280-₹9,400 range into focus. On the downside, ₹8,900 acts as immediate support, with ₹8,820 and ₹8,700 as stronger floors should the momentum fade. The near-term bias remains bullish, underpinned by persistent supply disruption concerns in the Strait of Hormuz.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline