Crude oil futures traded higher on Tuesday morning after US President Donald Trump warned Iran of serious consequences, if it fails to reach an agreement on its nuclear programme.
At 9.57 am on Tuesday, May Brent oil futures were at $71.65, up by 0.76 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $66.85, up by 0.81 per cent. March crude oil futures were trading at ₹6097 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹6045, up by 0.86 per cent, and April futures were trading at ₹6106 against the previous close of ₹6053, up by 0.88 per cent.
Markets are expecting a positive outcome from the proposed meeting between US and Iran later this week. Oman is mediating the talks between these two nations.
Meanwhile, Trump said on Monday that he would prefer reaching an agreement with Iran in talks with it later this week. However, he warned of a ‘very bad day’ for Iran, if it fails to reach an agreement.
Abbas Araghchi, Foreign Minister of Iran, had told CBS News earlier this week that if the US wants to find a resolution for Iran’s peaceful nuclear programme, the only way is diplomacy. Iran is a major crude oil producer in the global market.
Meanwhile, uncertainty over US global tariffs continued on Tuesday also. In a post on the social media platform Truth Social, Trump said: “Any Country that wants to “play games” with the ridiculous supreme court decision, especially those that have “Ripped Off” the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!” A recent US Supreme Court decision had struck down Trump’s tariffs on various countries.
February zinc futures were trading at ₹329.60 on MCX during the initial hour of trading on Tuesday against the previous close of ₹327, up by 0.80 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March guargum contracts were trading at ₹10121 in the initial hour of trading on Tuesday against the previous close of ₹10061, up by 0.60 per cent.
March jeera futures were trading at ₹22580 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹22720, down by 0.62 per cent.
–EOM–