Brent Slips as Trump Extends Ceasefire

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.

Brent crude oil futures climed as much as 5% to trade above $100 per barrel on Tuesday afternoon as investors increasingly accepted that US-Iran negotiations had reached an impasse ahead of the approaching ceasefire deadline. Vice President JD Vance had been expected to travel to Pakistan on Tuesday, but the trip was delayed after Iran failed to respond to US negotiating proposals, according to NY Times. Earlier, President Trump said Iran had “no choice” but to send representatives. Speaking to CNBC, he added that the US remained in a strong position and was “ready to go” with fresh bombing strikes if no agreement is reached. The conflict continues to weigh on supply, with estimates of demand destruction already near 4 million barrels per day and potentially rising to 5 million barrels per day, roughly 5% of global supply, with Asia expected to bear the brunt of the impact.