Brent crude futures fell 21 cents, or 0.2%, to $98.27 a barrel at 0039 GMT, after earlier touching $99.38.US West Texas Intermediate (WTI) crude dropped 28 cents, or 0.3%, to $89.39, after climbing as high as $90.71.
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Both benchmarks had gained about 3% in the previous session.The price movement comes after US President Donald Trump said he would indefinitely extend the ceasefire with Iran to allow more time for negotiations.However, the move appeared unilateral, with no immediate confirmation from Iran or US ally Israel on whether they would adhere to the extension.
Strait of Hormuz disruption keeps market on edge
Market sentiment remains fragile, with disruptions in the Strait of Hormuz continuing to weigh on supply outlook. The key waterway, which carries about 20% of global oil and LNG supplies, saw minimal activity, with only three ships passing in the last 24 hours, reported Reuters.“With the outcome of talks still unclear and the Strait of Hormuz closed, the market lacks clear direction,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, as per Reuters.
He added, “Unless fighting resumes, prices are likely to stay near the current levels for now.”At the same time, the US has maintained its naval blockade of Iranian ports, a move Tehran has described as an act of war.Iran has not officially responded to the ceasefire extension, though Tasnim News Agency said Tehran did not request it and reiterated its stance of resisting the blockade.
Supply signals, geopolitical tensions in focus
Beyond the Middle East, geopolitical developments elsewhere are also influencing oil markets.As per Reuters, Ukraine indicated that the Druzhba pipeline could resume operations, though sources said Russia may halt oil exports from Kazakhstan to Germany via the route starting May 1.Investors are also awaiting fresh US inventory data. Market sources cited by Reuters said US crude inventories fell by 4.5 million barrels last week, while analysts estimate a 1.2 million-barrel draw for the week ended April 17.With ceasefire talks still uncertain and supply disruptions ongoing, oil markets are expected to remain volatile in the near term.
