Oil dips as Iran tensions ease and traders seek clarity on India

Oil fell for a third day on easing geopolitical risks, and as traders sought clarity on a US-India trade deal that may require the South Asian nation to scale back imports of discounted Russian crude.

Brent was near $66 a barrel, after the April contract plunged 4.4% on Monday as part of a broad retreat in commodities, while West Texas Intermediate traded close to $62. US President Donald Trump said talks with Iran over a new nuclear deal could begin within days, after Tehran signaled it was ready to engage.

Elsewhere, Trump said he would roll back tariffs on India in return for an agreement that Prime Minister Narendra Modi would stop buying Russian oil, although that wasn’t confirmed by New Delhi. Shipments of Moscow’s crude to Indian ports have tumbled toward the lowest in more than three years, contributing to a growing pool of unsold sanctioned barrels across the globe.

Crude surged last month despite widespread concerns that the market faces a global glut, with prices supported by geopolitical concerns and interruptions to some supplies, including from Kazakhstan. The rally then faltered on Monday as oil was caught up in a major retreat from commodities, especially in metals. Gains in the US dollar added to the headwinds for raw materials.

“The follow-through weakness reflects how quickly bullish positions were unwound,” said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova Pte. in Singapore. “With geopolitical threats currently muted, the market has returned to the narrative for an oversupplied oil market.”

© 2026 Bloomberg

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