Global oil prices fluctuated as uncertainty over US-Iran peace talks persisted, with a ceasefire extension announced by Trump but no new timeline set for talks. Brent crude hovered around the high 90s while WTI eased after an initial rise, reflecting volatility linked to regional tensions and blockade threats. The tension stems from a February 28 clash between the US-Israel action and Iranās warnings over shipping in the Strait of Hormuz, escalating market nerves. Key diplomatic movements stalled as Pakistanās invitation for Tehran to engage faced hesitations from both sides. The outlook remains uncertain as negotiations, potential delegations, and follow-on responses continue to shape supply expectations.
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Oil markets opened with gains but quickly retraced as traders digested the status of talks, with Brent at about $98.32 a barrel and WTI near $89.41.
Trump said he would extend a ceasefire with Iran if talks progressed, while maintaining a blockade on Iranian ports until Tehran presented a unified proposal.
The ceasefire had been scheduled to expire in the current window, but no new deadline was provided for any extension.
Tensions followed a February 28 US-Israeli strike on Iran, with Tehran threatening to target vessels in the Strait of Hormuz, contributing to volatility.
Vice President JD Vanceās planned trip to Pakistan for talks was canceled by the White House, and Iran had not decided whether to send a delegation for discussions.
Iranian officials accused the US of bad faith in negotiations, amid broader regional tensions and concerns about naval blockades and asset seizures.
The overall trajectory remains undefined as negotiations unfold, with market volatility likely to persist depending on next steps from Washington and Tehran.