U.S. crude futures rose in early Wednesday trading despite Washington’s announcement of an indefinite extension of the ceasefire with Iran, as uncertainty surrounding peace talks persists and the Strait of Hormuz remains largely closed.
U.S. West Texas Intermediate (WTI) crude futures climbed to as high as $90.70 per barrel and were up 59 cents, or 0.7%, at $90.26 as of 22:15 GMT. U.S. crude contracts had already risen 2.8% on Tuesday.
U.S. President Donald Trump said he would extend the ceasefire with Iran indefinitely just hours before its expiration, allowing more time for peace talks aimed at ending a war that has claimed thousands of lives and disrupted the global economy.
The announcement appeared to be unilateral, and it was not immediately clear whether Iran or Israel, Washington’s ally, would agree to the extension of the ceasefire that began two weeks ago.
Trump also stated that the U.S. naval blockade of Iranian ports and coastlines would continue, a move Tehran’s leaders have described as an act of war.
Shipping activity through the Strait of Hormuz—which normally handles about 20% of global oil and liquefied natural gas supplies—remained largely halted on Tuesday. Shipping data indicated that only three vessels passed through the waterway over a 24-hour period.
— Reuters
