-- Crude futures eased on Wednesday as the US extended its ceasefire with Iran, temporarily stalling a direct military escalation.
The Brent futures contract slipped 0.8% to $97.74 per barrel. Murban closed at $96.29 on April 21 and was not trading as of the time of publishing this oil price update.
US President Donald Trump said Tuesday that he extended the ceasefire with Iran while maintaining a blockade, as negotiations remain uncertain.
Trump said in a Truth Social post, "... upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal."
Trump said the US blockade would be maintained, signaling continued pressure, and also indicated that talks remain conditional on Iran presenting a clear negotiating position.
While President Trump delayed military action against Iran at Pakistan's request, the continued closure of the Strait of Hormuz is suppressing global demand.
"The conflict is curbing supply, with demand destruction near 4 million barrels per day and possibly rising to 5 million mainly impacting Asia," Saxo Bank analysts said.
On the supply side, data from the American Petroleum Institute revealed Tuesday that US crude oil inventories declined by 4.40 million barrels in the week ended April 17.
The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.