Oil slips below $109 after volatile surge on Iran conflict

Crude oil futures slipped below $109 per barrel after a volatile rally fueled by escalating tensions involving Iran and the effective closure of the Strait of Hormuz. Prices had earlier surged toward the $111?115 range on renewed threats from Donald Trump and fears of prolonged supply disruptions. Despite the pullback, underlying risks remain elevated, with limited signs of de-escalation and ongoing concerns over damaged energy infrastructure. Meanwhile, OPEC+ announced a modest output increase of 206,000 barrels per day for May, largely viewed as symbolic given current supply constraints. US inventory data showing a 5.5 million barrel build had minimal market impact, as traders focused more on geopolitical developments. Back home, MCX April crude futures declined 1.6% to ₹10,240 per barrel. Overall, oil prices remain supported at elevated levels, with volatility likely to persist as markets track geopolitical cues and supply risks.

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