Oil prices slipped on Wednesday after an early rise, as markets reacted to uncertainty around the extension of a ceasefire between the United States and Iran.
Brent crude eased by 32 cents, or 0.3 percent, to $98.16 a barrel in morning trade, after briefly climbing close to $100 earlier in the session. US West Texas Intermediate crude also moved lower, falling 53 cents, or 0.6 percent, to $89.14, after opening above $90.
The pullback followed a strong rally in the previous session, when both global benchmarks gained about 3 percent on hopes that tensions in the Middle East could ease.
Ceasefire extension raises fresh questions
US President Donald Trump announced that the ceasefire with Iran would be extended without a fixed end date, just hours before it was due to expire. The move is meant to keep diplomatic talks going and possibly bring an end to a conflict that has already disrupted markets and led to heavy casualties.
However, the decision appears to have been taken by Washington alone. There has been no clear signal from Iran or Israel on whether they will accept the extension. This has left traders unsure about the next steps, adding to market caution.
Iranian media reports suggested that Tehran had not requested any extension and maintained its stance against the US naval blockade. Officials there have described the blockade as an act of war and warned they could respond.
Key oil route still under pressure
The situation has also kept a major global energy route under strain. The Strait of Hormuz, which usually handles about one fifth of the world’s oil and liquefied natural gas flows, remains largely inactive. Shipping activity has been minimal, with only a handful of vessels passing through in the past day.
This limited movement continues to raise concerns about supply disruptions, especially for countries that depend heavily on Middle Eastern energy exports.
Mixed signals from Europe and Russia
Elsewhere, developments around Russian oil flows added to the uncertain outlook. Ukraine’s president said the Druzhba pipeline could soon resume pumping oil into Europe. At the same time, industry sources indicated that Russia may halt some shipments from Kazakhstan to Germany through the same route starting May 1.
These mixed signals have made it harder for markets to assess the true level of supply in the coming weeks.
Inventory data in focus
Investors are now waiting for fresh data from the US Energy Information Administration later in the day. Early estimates suggest that crude inventories may have dropped by around 1.2 million barrels in the week ending April 17. Industry figures also pointed to declines in gasoline and distillate stocks.
Analysts say that if official data confirms these reductions, it would signal strong global demand, particularly from Europe and Asian markets, where buyers are trying to secure supplies amid ongoing uncertainty.
For now, the oil market remains caught between hopes for diplomatic progress and fears that the situation could quickly worsen, keeping price movements uneven.
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