Brent Crude Oil is up by 5%

Brent crude oil futures rebounded to around $101 per barrel on Wednesday after renewed attacks on shipping near Iran. Maritime authorities said a Liberia-flagged container vessel was fired on by a gunboat linked to Iran’s Islamic Revolutionary Guard Corps. In a separate incident, another two outbound cargo ships were also targeted. The attacks mark the latest escalation in the region as tensions over the waterway remain high. Earlier, Iran indicated it had received signals that the US may be open to ending its blockade, potentially reopening talks, while President Donald Trump extended a ceasefire but warned restrictions would remain until negotiations conclude. Iran has said it will not reopen the strait while US naval interceptions continue. The ongoing disruption is contributing to severe supply concerns, with estimates of demand destruction nearing 4 to 5 million barrels per day, or about 5 percent of global supply, with Asia most affected.

Brent crude futures fell below $98 per barrel on Wednesday, giving back some of the previous session’s gains after President Donald Trump extended the US-Iran ceasefire, noting that Tehran’s leadership was “seriously fractured.” He added the truce would remain in place until Iran’s leaders present a “unified proposal” to end the conflict. Meanwhile, reports indicated Vice President JD Vance canceled a planned trip to Islamabad for negotiations after Tehran informed the US via Pakistan that it would not take part in the meeting. Iran also said it would not reopen the Strait of Hormuz while the US Navy continues intercepting vessels. The conflict continues to strain supply, with estimates of demand destruction already nearing 4 million barrels per day and potentially rising to 5 million barrels per day, around 5% of global supply, with Asia expected to bear the brunt of the impact.

Brent crude futures stayed above $98 per barrel on Wednesday after rising more than 3% in the previous session, as peace talks between the US and Iran stalled and shipping through the Strait of Hormuz remains largely halted. Reports said Vice President JD Vance canceled a planned trip to Islamabad for negotiations after Tehran notified the US via Pakistan that it would not participate in the meeting. Iran also stated it would not reopen the Strait of Hormuz while the US Navy continues intercepting vessels. Meanwhile, President Donald Trump extended the US-Iran ceasefire, noting that Tehran’s leadership was “seriously fractured.” He added the truce would stay in place until Iran’s leaders deliver a “unified proposal” to end the conflict. The war continues to pressure supply, with estimates of demand destruction already nearing 4 million barrels per day and potentially climbing to 5 million barrels per day, about 5% of global supply, with Asia likely to absorb most of the impact.