Global oil prices turned lower on Wednesday after an early rise in Asian trading, as investors assessed the uncertain outlook for US–Iran peace negotiations following Washington’s decision to extend a ceasefire.
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Brent crude futures slipped 21 cents, or 0.2%, to $98.27 per barrel at 0039 GMT after briefly touching $99.38 earlier in the session. US West Texas Intermediate (WTI) crude fell 28 cents, or 0.3%, to $89.39 after reaching an intraday high of $90.71.
Both benchmarks had climbed around 3% in the previous session, reflecting heightened geopolitical risk and supply concerns.
The market reaction comes after US President Donald Trump announced an indefinite extension of the ceasefire with Iran, aimed at allowing further negotiations to end the ongoing conflict that has disrupted global energy flows and raised fears over supply security.
However, uncertainty remains over whether Iran or US allies in the region will accept the extension. The ceasefire, which began two weeks ago, has already faced instability amid continued tensions and maritime disruptions.
Market analysts said crude prices are being driven by geopolitical uncertainty, particularly surrounding access to the Strait of Hormuz, a critical energy chokepoint through which nearly one-fifth of global oil and liquefied natural gas supplies pass.
“With the outcome of talks still unclear and the Strait of Hormuz effectively closed, the market lacks clear direction,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment. He added that prices are likely to remain range-bound unless fighting escalates again.
The US administration has also maintained a naval blockade on Iranian ports and coastal waters, a move Tehran has condemned as an act of war. Iranian officials have signaled resistance to the blockade and have not confirmed participation in the extended ceasefire arrangement.
On the regional front, tensions remain high, with reports of renewed rocket fire in southern Lebanon involving Hezbollah and continued military posturing across multiple conflict zones linked to the wider Middle East crisis.
In parallel developments, Ukraine’s energy sector remains under pressure amid pipeline disruptions involving Russian oil flows to Europe, adding further complexity to global supply dynamics.
Later on Wednesday, market participants are awaiting the latest crude inventory data from the US Energy Information Administration, which could further influence price direction. Early estimates suggest a drawdown in US crude stockpiles, potentially offering some support to prices.
