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Delhi. Amid weakness in global markets after the announcement of a two-week ceasefire between the US and Iran, crude oil futures prices fell sharply on Wednesday and fell six percent to the lower circuit level. On the Multi Commodity Exchange (MCX), the futures contract for April delivery fell by Rs 640, or six per cent, to Rs 10,029 per barrel, its lower circuit level.

Similarly, the contract for delivery in May also slipped by Rs 565 or six per cent to reach the lower circuit level of Rs 8,860 per barrel. Sharp selling was seen in the market amid reduced fears of supply disruption due to easing of tensions.

Oil prices also fell in global markets after the announcement of ceasefire between America and Iran. This has increased hopes of normalization of supply from the Strait of Hormuz. This route is important for the transportation of about one fifth of the global oil supply.

In the international market, West Texas Intermediate (WTI) crude oil for supply in May slipped by $ 17.11 or 15.15 percent to $ 95.84 per barrel. At the same time, the price of Brent crude contract for supply in June fell by $ 14.52 or 13.29 percent to $ 94.75 per barrel. According to analysts, crude oil prices softened due to reduced geopolitical risks after tensions in West Asia eased.

US President Donald Trump has said that he will postpone the proposed military action against Iran after the US and Iran agree on a two-week ceasefire. The agreement also includes the reopening of the Strait of Hormuz. Meanwhile, Iranian Foreign Minister Abbas Araghchi indicated that traffic through the Strait of Hormuz would be allowed during this period, allaying concerns about supply disruptions.

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