MCX crude oil futures for October delivery fall Rs 264 to Rs 8,572 per barrel as hopes of reopening the Strait of Hormuz trigger fresh selling.

Crude oil futures fell by 3 per cent to Rs 8,572 per barrel on Tuesday as a fresh diplomatic signal from Iran raised hopes of reopening the Strait of Hormuz and eased fears of prolonged disruptions to global energy supplies.On the Multi Commodity Exchange (MCX), crude oil futures for October delivery declined by Rs 264, or 3 per cent, to Rs 8,572 per barrel.

The contract had lost Rs 903, or 9.3 per cent, in the past four sessions. Analysts said the latest selling came after reports that Iran has proposed reopening the Strait of Hormuz within seven days if the United States lifts its blockade on Iranian ports. The decline gathered pace in global markets, with Brent oil futures for the November delivery falling USD 2.53, or 2.52 per cent, to USD 97.81 per barrel.
West Texas Intermediate (WTI) for the same-month contract also declined USD 2.94, or 3.18 per cent, to USD 89.43 per barrel in New York. "Crude extended losses on Tuesday, with Brent slipping below USD 99 a barrel to the lowest level in two weeks, following a report that Iran has proposed reopening the Strait of Hormuz within seven days if the US lifts its blockade on Iranian ports," said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
The report triggered fresh selling as traders read the proposal as a fresh de-escalation signal ahead of this week's UN General Assembly. Tehran is framing the proposal as the basis for talks with mediating nations at the UN, while Iran's Revolutionary Guard separately said it could negotiate an end to the conflict if national interest required it, the reports said.
Chainwala said the latest slide comes after Monday's sharp selloff, when Brent settled more than 3 per cent lower at USD 100.34 a barrel, and WTI tumbled nearly 5 per cent to close at USD 95.78. Both contracts hit two-week lows after reports that Washington had shelved strikes on Houthi targets and was open to renewed contact with Tehran.
US President Donald Trump is scheduled to address the UNGA later in the day and may meet Iranian President Masoud Pezeshkian on the sidelines. A summit with Chinese President Xi Jinping is also on the agenda.
"Until a concrete outcome emerges from this week's meetings, crude's risk premium looks vulnerable to further unwinding, though stalled talks could just as quickly reverse the move," Chainwala added.


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