Crude Oil Futures Decline on MCX and International Markets Despite US Sanctions Warning on Iran

Crude oil futures saw a downward trend during the initial hours of trading on Friday, moving lower despite recent geopolitical developments involving the United States and Iran.

On the Multi Commodity Exchange (MCX), September crude oil futures were trading at ₹8,282 during the initial hour of trading on Friday, marking a decrease of 0.26 per cent from the previous close of ₹8,304. October futures on the MCX were trading at ₹8,123, down by 0.23 per cent compared to the previous close of ₹8,142.

International benchmarks mirrored the domestic movement. At 9:38 am on Friday, October Brent oil futures were recorded at $93.46, reflecting a 0.34 per cent decline. Meanwhile, October crude oil futures on West Texas Intermediate (WTI) stood at $86.40, down by 0.50 per cent.

In broader market observations, the Nifty held the 24,000 mark as crude price movements and bond yields kept market participants cautious.

The downward movement in oil prices followed statements from US Treasury Secretary Scott Bessent, who told CNBC that the United States intends to impose what he described as the 'toughest sanctions in history' on Iran. Bessent stated that applying maximum economic pressure would likely negate the need for a large-scale military operation, which he referred to as a kinetic restart. He added that the administration's plan aims to curtail Iran's economy.

US President Donald Trump similarly indicated plans on Wednesday to penalize any country providing financial support or a lifeline to Iran, calling the initiative an 'economic D-day' and urging allies to isolate the Iranian economy.

In other MCX commodities trading during the same period, September natural gas futures bucked the crude trend, trading at ₹267.70 compared to the previous close of ₹265.20, representing an increase of 0.94 per cent.

"The recent dip in crude oil futures, despite heightened geopolitical rhetoric and threats of severe economic sanctions, highlights the complex dynamics of global energy markets. For businesses and startups operating in India, fluctuations in commodity prices directly impact input costs, logistics, and broader macroeconomic stability. Founders and business leaders must maintain a close watch on energy and commodity trends, as global policy shifts can quickly influence domestic inflation, borrowing costs, and operational expenditure." — Dr. Shishir Gupta, Founder & CEO, StartupLanes