Global oil markets showed volatility as prices slipped after an early surge, driven by fresh geopolitical developments between the United States and Iran. Traders reacted cautiously to mixed signals surrounding a ceasefire extension and rising regional tensions.
Crude prices initially climbed during Asian trading hours but later lost momentum. The uncertainty surrounding diplomatic efforts and ongoing risks to key oil supply routes, especially the Strait of Hormuz, weighed heavily on market sentiment.
Brent crude dipped 0.2% to around $98.27 per barrel after briefly touching $99.38. Meanwhile, US West Texas Intermediate (WTI) crude fell 0.3% to $89.39 after reaching $90.71 earlier. Both benchmarks had surged nearly 3% in the previous session, reflecting heightened investor concerns.
The market shift followed an announcement by Donald Trump, who declared an indefinite extension of the ceasefire with Iran just hours before its expiration. The move is aimed at allowing more time for negotiations to end the ongoing conflict.
However, uncertainty remains over whether Iran or US ally Israel will agree to continue the truce. Analysts say the fragile situation has left oil markets without a clear direction, with prices likely to remain unstable in the near term.
Tensions escalated further after Trump stated that the American Navy would continue enforcing a blockade on Iranian ports. Iranian media linked to the Islamic Revolutionary Guard Corps responded by rejecting the extension and warning of resistance, increasing fears of further instability.
Also read: Oil Surges Past $100 Amid US Maritime Blockade on Iran
