Oil prices eased as fresh diplomatic signals reduced immediate fears of supply disruption, following the extension of the U.S.-Iran ceasefire by U.S. President Donald Trump.
As at the time of writing 06:55 AM (WAT), Brent crude slipped by 0.81% to $97.68 per barrel, while West Texas Intermediate (WTI) declined by 1.70% to $88.15 per barrel, indicating softer market sentiment.
The decline comes after Trump announced an extension of the ceasefire, directing U.S. forces to maintain a naval blockade while awaiting a unified response from Tehran.
“Based on the fact that the Government of Iran is seriously fractured… we have been asked to hold our attack on the country of Iran until such time as their leaders and representatives can come up with a unified proposal,” he said.
“I have therefore directed our military to continue the blockade and remain ready and able, and will extend the ceasefire until such time as their proposal is submitted,” Trump added.
The decision followed an appeal from Pakistan’s Prime Minister, Shehbaz Sharif, and the country’s military chief, Asim Munir, who urged Washington to delay military action and allow room for dialogue. While the extension has calmed the market in the short term, tensions remain unresolved, with the Strait of Hormuz still at the centre of the standoff and no clear timeline for Iran to present its proposal.