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New Delhi: Crude oil prices have fallen by 5 per cent. The main reason for this is the signs of easing tensions between the US and Iran. This market reaction came after US President Donald Trump said that Iran was in talks with Washington. These statements eased concerns about a conflict involving an OPEC member. This decline comes at a time when commodity markets have also seen a softening. Both Brent crude and US crude have fallen from multi-month highs due to geopolitical concerns. US dollar has strengthened in last few days The US dollar has also strengthened in the last few days. A stronger dollar has made dollar-denominated oil more expensive for buyers outside the US. OPEC+ also decided to keep production unchanged which increased concerns about sufficient supply in the oil market. After the 5 per cent drop in oil prices Brent crude futures were at $65.94 per barrel at 0528 GMT. US West Texas Intermediate crude was at $61.88 per barrel. The Iran factor In the past few days the oil market had already factored in the risks due to Trumps repeated warnings last month. Trump had said that the US could take action if Iran rejected the nuclear deal or continued its crackdown on protesters. According to analysts these risks had previously supported oil prices. Will there be fluctuation in oil prices? If US-Iran talks progress and tensions remain low pressure on oil prices may continue. Analysts say that there is ample supply in the market and demand remains seasonally weak. A strong US dollar could put further pressure on prices. If talks between the two countries break down geopolitical risks return or supply disruptions occur oil prices could rise again. Any changes in OPEC+ policy or unexpected shifts in global demand could also affect prices. Impact on India The fall in oil prices will have a significant impact on India. Since India has considerably reduced its purchases of cheaper Russian oil it is now increasing its oil imports from the US. The decrease in oil prices will provide some relief to India. However the increase in the value of the dollar will be detrimental to India.