Crude oil prices declined sharply on Monday after US President Donald Trump announced a five-day pause on military strikes against Iran following “productive conversations” between the countries.

“I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions,” said Trump in a post on Truth Social.

Benchmark Brent slumped over 10 per cent following the announcement to $96.06 per barrel at 19:30 Indian Standard Time (IST), compared to $106.88 a barrel on March 20, but rose to $101 per barrel later. The Indian crude basket has averaged $119 per barrel in March so far, a sharp rise from $69 per barrel last month.

The postponement of US military action comes a day after Trump threatened Iran with a 48-hour ultimatum, warning of strikes on the country’s energy infrastructure if Tehran does not fully reopen the Strait of Hormuz.

Despite the closure of the Strait of Hormuz, a critical maritime chokepoint between Iran and Oman, two India-flagged liquefied petroleum gas (LPG) tankers, Jag Vasant and Pine Gas, have crossed the strategic waterway and are headed towards India.

The two LPG tankers are carrying 92,000 tonnes of LPG, said Special Secretary at the shipping ministry Rajesh Kumar Sinha. Of the India-bound vessels held up around the Strait of Hormuz, two LPG tankers and one crude oil cargo have so far safely reached Indian shores.

The LPG vessels are chartered by Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL); crude shipments are tied to Indian Oil Corporation (IOCL), Reliance Industries Ltd (RIL), and PGN International; while the LNG vessel is chartered by Petronet LNG, said government officials.

The government is also looking at the situation of reefer containers — refrigerated containers used for perishable goods and temperature-sensitive medical goods — said Sinha. India’s shipping regulator told the industry last week that delayed turnaround of containers amid the crisis may lead to a shortage going forward.

Sinha also said that seafarers aboard the vessels have adequate rations of water and provisions. This newspaper reported on Saturday that some of these vessels had reported critically low levels of fresh water and provisions.

To secure supplies, India has stepped up LPG purchases from the US, with 13 tankers carrying around 350,000 tonnes of LPG currently headed to the country, according to data from maritime intelligence firm Kpler. For the first time, India has also booked an LPG cargo from Argentina, with a shipment of 19,486 tonnes expected to arrive by end-March.

Meanwhile, LPG supplies from West Asia have fallen sharply due to the conflict. Only 11 tankers, carrying 192,734 tonnes, are currently headed from the region to India, and most of these cargoes had sailed before the conflict began.

As the government urged consumers to switch to piped natural gas (PNG) amid LPG shortages, more than 3.5 lakh domestic and commercial PNG connections have been issued during the first three weeks of March by gas entities.