Crude Oil Crashes Below $100 as Gold and Silver Plunge Following Iran’s Strait of Hormuz Offer

• by Akanksha Mishra
• 2026-09-22 18:03:00

Global commodity exchanges experienced widespread selling pressure on Tuesday after a major diplomatic de-escalation signal emerged from the Middle East, prompting an abrupt sell-off across energy and precious metal contracts. Crude oil benchmark prices tumbled below the psychological $100 per barrel mark following an official declaration from Tehran stating that Iran is prepared to reopen the strategically critical Strait of Hormuz within seven days if the United States lifts its naval and economic blockade on Iranian ports. The potential easing of shipping bottlenecks immediately dissolved supply risk premiums in the market, dragging international crude oil down sharply alongside gold and silver, which faced additional headwinds from an ascendant US dollar and hawkish signals from Federal Reserve officials.

Global Bourses React: Brent Drops to $98 as Gold and Silver Slip Under Dollar Strength

On international bourses, energy contracts tumbled as soon as details of the seven-day timeline circulated among commodity desks. Comex crude oil slumped by 2.59% to trade down at $93 per barrel, while international benchmark Brent crude dropped 2.05% to hover at $98 per barrel. Simultaneously, safe-haven precious metals retreated from elevated levels, with spot gold falling 0.65% to breach below $4,350 per ounce and spot silver shedding 0.65% to trade under $66 per ounce. Analysts pointed out that the sudden cooling of regional maritime standoff fears, coupled with surging US Treasury yields, prompted speculative institutional funds to unwind defensive long positions across key global commodity indices.

MCX Trading Update: Domestic Crude Sinks Over 2.6% While Gold and Silver Register Steep Declines

The sharp retreat echoed across Indian domestic trading on the Multi Commodity Exchange (MCX) through Tuesday’s evening session. October crude oil contracts dropped 2.61%, slumping ₹231 to trade at ₹8,605 per barrel after touching an intraday band between ₹8,529 and ₹9,008. In the bullion segment, October gold futures fell by ₹829 to ₹1,52,265 per 10 grams, moving within an intraday range of ₹1,51,581 to ₹1,53,497. December silver contracts shed ₹1,174 to settle at ₹2,38,143 per kg, pulling back from a session peak of ₹2,40,529. Explaining the broader trajectory, Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, noted that precious metals remain hemmed in by resilient dollar valuations, sticky domestic inflation data, and cautious investor sentiment shaped by assertive monetary policy commentary from US central bankers.

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