Oil prices fluctuate as the outcome of U.S.–Iran peace talks remains uncertain.

https://theconversation.com/topics/fuel-shortage-120278

Global oil prices saw slight fluctuations during early Asian trading on Wednesday, as uncertainty continued around ongoing peace discussions between the United States and Iran.

On Tuesday, U.S. President Donald Trump announced an extension of the ceasefire with Iran, stating it would remain in place while negotiations progress. He also warned that the U.S. would maintain its blockade on Iranian ports until Tehran submits a “unified proposal.”

Despite opening at higher levels, Brent crude slipped by 0.2% to $98.32 per barrel, while West Texas Intermediate fell 0.3% to $89.41.

Energy markets have remained unstable since the U.S. and Israel launched strikes on Iran on 28 February, followed by Iranian threats to target ships passing through the strategically important Strait of Hormuz.

The initial two-week ceasefire was set to expire on Wednesday evening in Washington, though no new deadline was provided for its extension.

In a post on Truth Social, Trump claimed the Iranian government is “seriously fractured” and indicated that further U.S. attacks would be paused after Pakistan requested additional time for negotiations.

Vice President JD Vance, who is leading the U.S. negotiations, was expected to travel to Islamabad for talks but will no longer make the trip, according to the White House.

Meanwhile, Iran has yet to decide whether it will send representatives to Pakistan for discussions with the U.S., a foreign ministry spokesperson told the BBC.

Experts say traders are staying cautious amid uncertainty over the conflict’s next phase. Jiajia Yang of James Cook University noted that market movements are being driven more by expectations than actual oil supply.

Oil prices have surged since the conflict began, largely due to disruptions in the Strait of Hormuz, a route that typically carries about one-fifth of global energy supplies and is now effectively restricted by Iran.

Earlier in the month, the U.S. also announced plans to intercept vessels traveling to and from Iranian ports.