(April 22) : Oil held a two-day gain after US President Donald Trump extended a ceasefire with Iran, even as peace talks faltered and a blockade of the Strait of Hormuz kept flows locked up.
West Texas Intermediate traded above US$90 barrel, after adding almost 10% in the prior two sessions, while Brent closed below US$99. Trump said Tuesday that the US would hold off on fresh attacks on Iran but that a naval blockade of the vital shipping route would continue until “discussions are concluded, one way or the other.”
Brent, the global benchmark, briefly surged above US$100 a barrel in post-settlement trading on Tuesday after the AP reported that US Vice President JD Vance scrapped a trip to Islamabad for peace talks. That came as Iranian media reported that the country informed the US via Pakistan that it won’t attend the talks. Futures then fell following Trump’s comments on an extension.
The negotiations had been seen as an 11th-hour chance for de-escalation before the two-week truce ended, and to clarify whether oil tankers will soon be able to transit the strait. The two sides have a host of unresolved issues, including the Islamic Republic’s nuclear capabilities and Israel’s invasion of Lebanon.
“Headlines are coming 100 miles an hour, but the barrels are still stuck in neutral,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “The back-and-forth around a ceasefire extension, potential blockade, and Iran’s role is keeping markets on edge, but the reality is flows remain constrained.”
uploaded by Isabelle Francis
