New Delhi, March 18 : Global oil prices traded in the negative zone on Wednesday, slipping over 3 per cent after a sharp surge in the previous session, as escalating geopolitical tensions in West Asia kept markets volatile.

Brent crude futures were trading 2.50 per cent lower, hitting an intra-day low of $100.85 per barrel by 9:45 am, while the US benchmark West Texas Intermediate (WTI) crude fell 3.40 per cent to an intra-day low of $92.83.

So far this week, WTI futures have declined as much as 4.73 per cent, while Brent crude has dropped over 2 per cent.

The sharp correction comes despite heightened geopolitical risks following Iranâ??s confirmation that Ali Larijani, a senior security official and secretary of the Supreme National Security Council, has been killed. His death is being viewed as a significant blow to Iranâ??s wartime leadership and signals further deterioration in the regional conflict.

At the centre of market concerns remains the Strait of Hormuz, a critical oil transit route that typically carries nearly a fifth of global shipments.

Movement through the passage continues to remain restricted, with vessel traffic increasingly dictated by geopolitical developments rather than normal trade flows.

Efforts by US President Donald Trump to mobilise allied support to secure the route appear to have stalled, adding to uncertainty over the timeline for normalising supply chains.

Meanwhile, military activity in the region has intensified, with Iran stepping up attacks and US forces targeting missile sites near the strait.

Oil prices have rallied sharply this year, rising nearly 70 per cent, largely driven by the escalation involving Iran, the US and Israel.

The surge is now beginning to reflect in retail fuel costs, with US diesel prices crossing $5 per gallon.

Notably, oil prices surged by more than 3 per cent in the previous session.

/IANS