Oil prices fluctuate as status of US-Iran peace talks remains unclear

Global oil prices showed mixed movement during early Asian markets on Wednesday, influenced by the unresolved state of US-Iran peace discussions. US President Donald Trump announced plans to prolong the Iran ceasefire until diplomatic progress is made between the two nations. He emphasized that the US will keep its port blockade in place until Tehran offers a cohesive plan.

Brent crude initially rose but fell by 0.2% to $98.32 (£72.73) per barrel, whereas West Texas Intermediate declined by 0.3% to $89.41. The energy markets have experienced instability since the US and Israel’s attack on Iran on 28 February, prompting Tehran to threaten vessel strikes in the strategic Strait of Hormuz. The initial two-week ceasefire was set to end on Wednesday evening in Washington time, though Trump left the deadline unspecified for the extended ceasefire.

In a post on Truth Social, Trump claimed the Iranian government is “seriously fractured” and indicated the US would delay further strikes following Pakistan’s request for additional time to secure a deal. Vice President JD Vance, spearheading US diplomatic efforts, was anticipated to travel to Islamabad for discussions on Tuesday, but the White House confirmed he will not be making the trip. Iran has yet to confirm sending a delegation to Pakistan for talks with the US, according to a foreign ministry representative.

Traders are keeping a close watch on the conflict’s developments, according to Jiajia Yang, a lecturer at Australia’s James Cook University. “The situation is more about market sentiment than physical oil supply,” Yang remarked.

The cost of crude has surged since the conflict began, driven by the Strait of Hormuz, a critical route for a fifth of the world’s energy, being effectively closed by Iran. Earlier this month, the US also announced it would intercept ships heading to or from Iranian ports.