Global crude oil markets have witnessed a sharp correction in recent weeks amid easing geopolitical tensions in the Middle East. The United States and Iran have reportedly moved close to a ceasefire agreement, significantly reducing the risk premium embedded in oil prices. Brent crude, which had surged to around $126 per barrel in April 2026 at the peak of tensions, has corrected to below $78 per barrel last week. Reflecting the global trend, domestic crude prices in India have also declined sharply, with MCX crude slipping below ₹7,100 per barrel. This sharp fall highlights the extent to which geopolitical risks—particularly those involving key oil-producing regions—drive price movements in global energy markets.
Cooling Risk Premium, But Uncertainty Lingers
