The rally came after Brent crude futures declined more than 4% to around $83 per barrel as investors cheered a preliminary agreement between the US and Iran that could pave the way for the reopening of the Strait of Hormuz, one of the world's most important oil shipping routes.

US President Donald Trump said the agreement would lead to the reopening of the Strait of Hormuz and the lifting of the US naval blockade.

The Strait of Hormuz handles roughly one-fifth of global seaborne oil trade. Any disruption to traffic through the route typically raises concerns over supply shortages and pushes crude prices higher.

A potential reopening of the waterway is expected to restore normal crude flows from the Gulf region, easing supply concerns and reducing pressure on oil prices.

Lower crude prices are generally positive for OMCs as they reduce input costs and support refining and marketing margins. Since domestic fuel prices do not always move in line with fluctuations in global crude prices, a decline in oil prices can improve profitability for fuel retailers.