Global Oil Prices Drop In Early Trade As Trump Halts Iran Strikes

Global crude oil prices edged lower in early trading on Friday, March 27, 2026. The decline came after Donald Trump said the US would hold off on planned strikes targeting Iran’s power and energy facilities for 10 days (until 6 April), creating room for diplomatic talks at the highest level.

At 7:50 am, Indian Standard Time (IST), Brent Crude and West Texas Intermediate (WTI) were down by almost 2% at $108 per barrel and $92.67 per barrel, respectively. Despite the week's extreme volatility, Brent is now on track for its first weekly decline in over a month as traders bet on a diplomatic breakthrough.

The 10-Day Ultimatum

The temporary truce comes after a frantic week of back-channel diplomacy. As a sign of de-escalation, Trump revealed that Iran has permitted 10 Pakistan-flagged oil tankers to pass through the Strait of Hormuz as a goodwill gesture. This is a significant development, given that the war has nearly paralysed shipments through this vital waterway.

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Critical Time For OMCs And Investors

Industry watchers feel that for energy investors and the Indian oil marketing companies (OMCs), the next 10 days are a critical wait-and-watch period. If the 6 April deadline passes without a formal ceasefire, a resumption of strikes could send oil prices skyrocketing.

Sources:

The Times of India

The Hindu

The Economic Times

Channel News Asia