WTI slips below $86 as geopolitical fragility intensifies

WTI crude drifted below $86 per barrel as fragile ceasefire dynamics between the United States and Iran injected renewed uncertainty into energy markets, particularly with tensions resurfacing around the Strait of Hormuz?a critical artery for global oil flows. Conflicting signals on diplomatic progress, coupled with incidents involving vessel seizures and reported confrontations, have eroded confidence in the sustainability of the truce. The prospect of the ceasefire expiring without extension has further heightened risk perception, keeping traders on edge. While the recent dip in prices suggests a partial unwinding of the geopolitical risk premium, volatility remains elevated, with markets acutely sensitive to both escalation risks and the possibility of a last-minute diplomatic breakthrough. MCX May crude oil futures were down 0.5% at ₹8134 per barrel.

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