Crude oil futures traded higher on Monday morning as there was no progress in initiating talks between the US and Iran to end the conflict in West Asia.
At 10 am on Monday, June Brent oil futures were at $100.38, up by 1.26 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $95.35, up by 1.01 per cent. May crude oil futures were trading at ₹8,998 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹8817, up by 2.05 per cent, and June futures were trading at ₹8590 against the previous close of ₹8432, up by 1.87 per cent.
In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil is trading stronger on Monday morning after attempts to get US-Iran peace talks back on track broke down, erasing hopes for a resumption of energy flows through the Strait of Hormuz anytime soon.
The lack of progress means the market is tightening every day, requiring oil prices to reprice at higher levels. There’s little alternative to fill a roughly 13 million barrels a day shortfall.
In the short term, inventories help to fill the gap, whether commercial or strategic reserves. Clearly, the longer this persists, the more demand destruction we will need to see. To see further demand destruction, prices will need to move higher, they said.
US efforts to cut off Iranian oil would add to the upside. Last week, the US seized a sanctioned tanker carrying Iranian oil in the Indian Ocean.
The US also has tightened Iranian oil-related sanctions. It imposed sanctions on China’s Hengli Petrochemical (Dalian) Refinery Co for its purchases of Iranian oil, as well as approximately 40 shipping companies and vessels that form part of Iran’s shadow fleet.
Amid the disruptions in the Strait of Hormuz, Iranian oil has continued to transit the strait. The US blockade appears aimed at forcing a resolution and increasing pressure on Iran to return to negotiations, they said.
Meanwhile, a report in Axios said that Iran has given a new proposal to the US to reopen the Strait of Hormuz and end the war, with nuclear negotiations postponed for a later stage. The report quoted an unnamed US official and two sources with knowledge.
The proposal seeks the extension of the ceasefire for a long period or till the parties agree on a permanent end to the war.
According to the proposal, the nuclear negotiations would only start at a later stage, after the strait was open and the blockade lifted.
The Axios report said that the White House has received the proposal, but it’s unclear whether the US is willing to explore it.
April menthaoil futures were trading at ₹971.50 on MCX during the initial hour of trading on Monday against the previous close of ₹989.80, down by 1.85 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May castorseed contracts were trading at ₹6518 in the initial hour of trading on Monday against the previous close of ₹6,502, up by 0.25 per cent.
May dhaniya futures were trading at ₹12,994 on NCDEX in the initial hour of trading on Monday against the previous close of ₹13,228, down by 1.77 per cent.
Published on April 27, 2026
