Global markets are closely watching developments between Washington and Tehran after US President Donald Trump said talks with Iran were underway, while Iranian officials disputed the US account of the negotiations. The conflicting statements have created uncertainty over whether the latest diplomatic push will lead to a broader de-escalation of the conflict.
Oil prices have nevertheless fallen sharply as traders price in the possibility of improved diplomatic relations and reduced disruption to energy supplies. For India, lower crude prices could provide some relief to the import bill, inflation and corporate input costs. However, any renewed escalation around the Strait of Hormuz could quickly reverse the decline and bring fresh volatility to global markets
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