WTI, Brent, Iran ceasefire extension clouds outlook
A tugboat guides the Russian oil tanker Anatoly Kolodkin as it arrives at the oil terminal in the port of Matanzas in northwestern Cuba on March 31, 2026. (Photo: Yamil LAGE / AFP via Getty Images)
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Oil prices fell on Wednesday as uncertainty remained over the course of the US-Iran conflict after President Donald Trump extended a fragile ceasefire with Tehran but signaled tensions were far from resolved.
International benchmark Brent crude oil and US West Texas Intermediate futures contracts declined; While Brent decreased by 0.68% to $97.81 per barrel, WTI decreased by 0.29% to $89.04 per barrel.
The moves came after Trump said the US would extend its temporary ceasefire with Iran beyond a previously agreed period, citing the “severely fragmented” political situation in Tehran.
The ceasefire will remain in effect until Iranian leaders present a joint proposal with Washington and Israel to end hostilities, he said in a post on Truth Social. Meanwhile, the USA will continue the blockade of Iranian ports.
The extension of the ceasefire underscores the uncertain path to de-escalation. While the move delays the risk of an imminent military strike, it also highlights deep divisions in Iran’s leadership and the lack of a clear diplomatic breakthrough.
Oil prices rose early Tuesday after it became clear that Vice President J.D. Vance had not traveled to Pakistan, where peace talks with Iran were supposed to continue.
However, Iranian state news outlet Tasnim reported that Tehran negotiators had informed their US counterparts through an intermediary in Pakistan that they would not participate in further talks.
“Iran announced today that participating in negotiations under these conditions is a waste of time because the United States is preventing a suitable agreement from being reached,” Tasnim reported.
