Kuala Lumpur – Oil prices edged lower on Wednesday as uncertainty surrounding the U.S.-Iran conflict persisted despite President Donald Trump’s announcement of a ceasefire extension.
Brent crude futures fell 0.68% to $97.81 per barrel, while West Texas Intermediate (WTI) crude declined 0.29% to $89.04 per barrel.
The modest pullback came after oil prices had surged in the previous session on heightened geopolitical tensions. President Trump extended the fragile ceasefire with Iran, stating it would remain in place until Iranian leaders present a unified proposal to end hostilities with the United States and Israel.
“This extension is necessary because the political situation in Tehran is seriously fractured,” Trump said, adding that the U.S. would continue its blockade of Iranian ports in the meantime.
The extension has created a cloud of uncertainty over the oil market. While it delays the immediate risk of renewed military strikes, it also highlights deep divisions within Iran’s leadership and the lack of a clear diplomatic breakthrough.
Iranian state media reported that Tehran has told U.S. counterparts through intermediaries that further negotiations under current conditions would be “a waste of time,” as the U.S. continues to block any suitable agreement.
Analysts noted that the prolonged uncertainty is keeping traders on edge, with the possibility of supply disruptions in the Strait of Hormuz still looming if the ceasefire collapses.
The fragile truce and ongoing geopolitical tensions continue to support a premium in oil prices, but the lack of concrete progress toward de-escalation is limiting upside momentum for now.
Market participants will closely monitor any further developments in U.S.-Iran talks in the coming days, as a breakdown in the ceasefire could quickly push prices significantly higher.
