Oil prices remained elevated even after U.S. President Donald Trump announced an extension of the truce with Iran, signaling that energy markets remain unconvinced that the latest diplomatic move will lead to a broader easing of tensions.
Brent crude for June delivery briefly moved above the 100-dollar-per-barrel mark overnight, its highest level in roughly a week, before easing back to around 99 dollars. Even with that pullback, the benchmark still posted a daily gain of nearly 4 percent. U.S. crude, West Texas Intermediate, also advanced, though at a more moderate pace.
Trump had said Washington would hold off on further military action at Pakistan’s request, allowing additional time for Iran’s leadership to formulate a unified position and continue talks. Without that decision, the ceasefire had been expected to expire today, with the U.S. president previously warning of major strikes targeting Iran’s energy network and civilian infrastructure.
Despite the temporary extension, expectations for a diplomatic breakthrough remain weak. So far, Washington and Tehran have not secured agreement on a second round of negotiations, even with Pakistan trying to mediate between the two sides.
At the same time, the United States is keeping its maritime restrictions on Iranian trade in place, a move Tehran sees as one of the main obstacles to restarting meaningful diplomacy. That combination of a fragile truce, stalled talks and continued pressure at sea is helping keep oil markets on edge.
