Oil prices held steady after signs emerged that the US and Iran were considering extending the ceasefire and reopening talks to end the war that has rocked energy markets. WTI was barely changed at around US$91 per barrel, while Brent settled around US$95 per barrel on Wednesday.
Several sources said Washington and Tehran were considering extending the ceasefire for two weeks to allow room for negotiations toward a peace deal. However, market participants considered the process fragile after the initial conclusion of talks in Pakistan last weekend failed to produce an agreement.
The market’s primary focus remains on the Strait of Hormuz, with oil shipments reportedly still stalled as the conflict enters its seventh week. The US has imposed a naval blockade to cut off Iranian shipping traffic, while Tehran maintains the waterway’s closure to most other vessels, maintaining high supply and logistics risks.
Iran has warned that a prolonged US blockade could be seen as a prelude to a ceasefire violation. Iran’s Joint Chiefs of Staff Commander Ali Abdollahi stated that the armed forces would not allow continued imports and exports through the Persian Gulf, Sea of Oman, and Red Sea if the blockade persists. Meanwhile, financial officials gathered in Washington this week are said to be concerned about the uncertainty surrounding the next course of action, with New Zealand Finance Minister Nicola Willis declaring that the war “makes the world poorer.”
On the US fundamentals front, data showed a decline in crude oil inventories and a key category of refined products. Rising foreign demand pushed US oil and fuel exports to record levels, with buyers—particularly in Asia—seeking supplies. The US national average retail gasoline price hovered around US$4.11 per gallon, compared to less than US$3 before the war, heightening market concerns about the impact on inflation. US Treasury Secretary Scott Bessent said any fuel price reductions depended on progress in negotiations and expressed confidence that gasoline prices would level off ahead of the summer driving season.
Looking ahead, the market will discuss whether mediators can hold technical talks to resolve the most sensitive issues—including the reopening of the Strait of Hormuz and Iran’s nuclear enrichment—as this path will determine whether geopolitical risk premiums remain embedded in oil prices or begin to compress. The May WTI contract was last recorded down 0.3% to US$91.02 per barrel in Singapore morning, while the June Brent contract closed steady at US$94.93 per barrel on Wednesday. (asd)*
Source: Newsmaker.id