Oil prices declined slightly on Wednesday as uncertainty persisted over the direction of the conflict between the United States and Iran, despite an extension of the fragile ceasefire by Donald Trump.
International benchmark Brent crude fell by 0.68% to $97.81 per barrel, while U.S. West Texas Intermediate (WTI) dropped 0.29% to $89.04 per barrel.
The decline follows Trump’s announcement that the U.S. would extend its temporary truce with Tehran beyond the initial deadline, citing a “seriously fractured” political situation within Iran. He stated that the ceasefire would remain in place until Iranian leaders present a unified proposal to end hostilities with Washington and Israel. Meanwhile, the U.S. will continue its blockade of Iranian ports.
The extension highlights the uncertain path toward de-escalation. While it reduces the immediate risk of military confrontation, it also reflects internal divisions within Iran and the absence of a clear diplomatic breakthrough.
Earlier on Tuesday, oil prices had risen after it was confirmed that JD Vance had not departed for Pakistan, where renewed peace talks with Iran were expected.
However, Iran’s semi-official Tasnim news agency later reported that Tehran had informed U.S. officials—through intermediaries in Pakistan—that it would not participate in further negotiations, stating that under current conditions, talks would be “a waste of time” due to obstacles to reaching a meaningful agreement.
