Global oil markets are in a state of shock today as Brent Crude prices plummeted nearly 27% from yesterday’s multi-year highs. The "war premium" that had pushed oil toward $120 per barrel on Monday evaporated in hours following unexpected comments from U.S. President Donald Trump regarding the conflict with Iran.

1. The "Trump Effect" on Energy
Yesterday (March 9), Brent crude touched $119.50, its highest level since the 2022 Ukraine invasion, as the Strait of Hormuz remained effectively blocked. However, President Trump’s recent remarks—suggesting that Iran has "nothing left in a military sense" and that the conflict could end "very soon"—triggered a massive sell-off. As of this morning, Brent has stabilized around the $88–$90 mark.

2. India’s Retail Shield
Despite the international chaos, the Indian government has maintained a "wait-and-watch" policy.
Price Freeze: Petrol and diesel prices in major cities like Delhi (₹94.77) and Mumbai (₹103.49) remain unchanged today.
LPG Changes: To prevent hoarding during this volatile period, the government has increased the minimum gap for booking domestic LPG refills from 21 days to 25 days.

3. The Bearish Long-Term Outlook
While the war in West Asia has caused a short-term spike, major financial institutions like J.P. Morgan and the EIA are warning of a massive surplus later this year. Analysts predict that if de-escalation continues, oil could crash into the $50s or $60s by late 2026 due to weakening global demand and rising production from non-OPEC countries like Guyana and Brazil.

4. What This Means for Consumers
For now, the immediate threat of petrol crossing ₹150 in India has been averted. However, the market remains "hypersensitive." Any further kinetic action in the Persian Gulf could send prices back into triple digits instantly.

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