Global oil prices retreated on Tuesday as the ceasefire between Iran and Israel held, reducing fears of a wider conflict in the Middle East.
WTI crude fell 1.61 percent to $89.84 per barrel, while Brent crude slipped 1.24 percent to $93.16 per barrel.
The decline in crude prices also supported the Indian currency. The rupee strengthened 0.24 percent to 95.42 per dollar, compared with the previous close of 95.65.
Oil prices retreat after ceasefire
Oil had rallied sharply during the conflict, with WTI rising from around $65 per barrel in late 2025 to above $113 per barrel in March 2026.
The latest decline followed signs of de-escalation between Iran and Israel.
US President Donald Trump urged both countries to avoid further escalation and said diplomatic talks with Tehran were continuing.
WTI crude has now:
- Fallen about 8.22 percent over the past month
- Gained 38.52 percent since the start of 2026
Strait of Hormuz remains a concern
Despite the ceasefire, a major supply issue remains unresolved.
The Strait of Hormuz, which carries nearly 20 percent of global oil supplies, remains effectively closed under a dual blockade maintained by the United States and Iran.
The disruption has affected shipments of:
- Crude oil
- Refined petroleum products
- Liquefied natural gas
As a result, oil prices remain well above levels seen before the conflict.
Inventory data points to tight supply
US crude inventories declined by 7.97 million barrels in the latest weekly data.
The American Petroleum Institute (API) reported an additional drawdown of 6.75 million barrels.
On the production side:
- Saudi Arabia’s output fell to 6,879 thousand barrels per day in April 2026 from 7,763 thousand barrels per day earlier.
- US production remained near 13,707 thousand barrels per day.
Coal prices and heating oil prices have risen 43.71 percent and 67.52 percent, respectively, over the past year.
Rupee gains as oil prices ease
The Indian rupee recovered to 95.42 per dollar as softer crude prices eased pressure on the country’s import bill.
India imports nearly 85 percent of its crude oil requirements.
The rupee had weakened sharply this year, with the USD/INR rate moving from around 85.6 at the beginning of 2026 to nearly 97 per dollar in late May before the recent recovery.
The currency has depreciated around 11.53 percent on a year-to-date basis.
RBI measures support the currency
The Reserve Bank of India has introduced steps to attract foreign currency inflows.
According to the report, lower hedging costs and reduced dollar buying by importers have also supported the rupee.
However, several factors continue to limit gains.
Headwinds remain
Key indicators include:
- India’s inflation rate: 3.48 percent in April 2026
- US inflation rate: 3.80 percent
- US Federal Funds rate: 3.75 percent
Higher US interest rates have kept Treasury yields elevated, attracting capital towards dollar assets and limiting appreciation in emerging market currencies.
Investors are also watching developments around the Strait of Hormuz, as any prolonged disruption could once again push oil prices higher and increase pressure on oil-importing countries such as India.
Key numbers
| Indicator | Latest |
|---|---|
| WTI Crude | $89.84 per barrel |
| Brent Crude | $93.16 per barrel |
| USD/INR | 95.42 |
| India’s oil imports | 85% of requirement |
| Strait of Hormuz share of global supply | 20% |
| US Fed Funds Rate | 3.75% |
| India inflation | 3.48% |
| US inflation | 3.80% |
TL;DR:
WTI crude fell to $89.84 per barrel after the Iran-Israel ceasefire held, while the Indian rupee strengthened to 95.42 against the dollar. However, the continued closure of the Strait of Hormuz remains a key risk for global energy markets.
AI summary:
- WTI crude declined 1.61% to $89.84.
- Brent crude fell to $93.16.
- The rupee strengthened to 95.42 per dollar.
- The Strait of Hormuz remains effectively closed.
- Lower oil prices provided relief to India’s currency.
