Oil drops 2% on ceasefire hopes, supply fears recede

Crude oil prices fell sharply on Tuesday, with benchmark futures slipping around 2% as a pause in hostilities between the U.S. and Iran eased fears of further disruptions to global energy supplies. Although Iran denied reports of agreeing to a formal ceasefire, the temporary halt in fighting improved market sentiment and reduced the geopolitical risk premium that had fueled oil's recent rally. Adding to the bearish outlook, the resumption of tanker loadings at Kazakhstan's key export terminal helped ease supply concerns. Meanwhile, a slightly weaker U.S. dollar and investor caution ahead of the Federal Reserve's policy decision also influenced trading. On the domestic front, MCX August crude oil futures declined nearly 2% to around ₹7,800 per barrel. With geopolitical tensions showing signs of cooling and supply flows improving, crude oil may remain under pressure in the near term, though markets continue to closely monitor developments in the Middle East and the Fed's policy outlook.

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