NEW DELHI: 

International crude oil prices declined to their lowest closing levels in nearly a month, as hopes of a diplomatic breakthrough between the United States and Iran eased concerns over potential disruptions to global energy supplies.

Brent crude futures for January delivery settled at $103.60 per barrel, while US West Texas Intermediate (WTI) crude futures closed at $96.09 per barrel. The decline reflected improving market sentiment amid reports of diplomatic efforts aimed at reducing tensions between Washington and Tehran.

Qatar is reportedly playing a role in facilitating discussions between the two countries in an effort to find common ground and prevent further escalation of the conflict. The possibility of a diplomatic understanding has raised expectations that disruptions to oil production and transportation in the Middle East could be contained.

However, uncertainty surrounding the reopening of the Strait of Hormuz continues to remain a major concern for energy markets. The strategic waterway is one of the world's most important oil transit routes, carrying a substantial share of global petroleum shipments. Any prolonged disruption could affect crude oil availability, international trade and energy prices.

Market participants are closely monitoring diplomatic developments, regional security conditions and shipping movements through the Strait of Hormuz to assess the outlook for crude oil prices.

The recent decline in oil prices could offer some relief to major oil-importing economies, including India, by potentially reducing their import bills and easing pressure on inflation and the current account deficit. Lower crude prices could also help moderate fuel costs and transportation expenses, although the impact on domestic prices would depend on currency movements, taxes and government pricing decisions.

Despite the recent correction, analysts and traders remain cautious about the near-term outlook, as any breakdown in diplomatic efforts or renewed military escalation could quickly reverse the downward trend in international oil markets.