Oil prices remained close to the $100 mark on Wednesday, as ongoing supply disruptions in the Strait of Hormuz kept markets tense despite U.S. President Donald Trump announcing an indefinite extension of the ceasefire with Iran.
Brent crude, the global benchmark, rose 0.6% to $99.07 a barrel, while U.S. West Texas Intermediate gained 0.6% to $90.25 by 05:29 ET (09:29 GMT). Both contracts had fluctuated between gains and losses earlier in the session.
Shipping through the Strait of Hormuz—an essential route off Iran’s southern coast that carries roughly 20% of global oil supply—remains severely restricted. U.K. Maritime Operations reported that a container vessel was attacked in the area on Wednesday, shortly after a ship was struck by a boat linked to Iran’s Islamic Revolutionary Guards Corps.
Ceasefire extended, but uncertainty remains
Trump said on Tuesday that the ceasefire with Iran would be extended indefinitely, allowing diplomatic efforts to continue.
However, it remains unclear whether Tehran has agreed to the extension, as no official response has been issued by Iran’s leadership. Previously, Iranian officials had indicated they would not enter negotiations while the U.S. blockade remains in place.
The outlook for future talks is still uncertain, particularly after both the U.S. and Iran opted not to send representatives to scheduled negotiations in Pakistan this week.
Trump later claimed that Iran is losing $500 million per day due to the effective shutdown of the Strait of Hormuz and suggested that any lasting agreement would require lifting the blockade.
The strait has been central to the conflict, with its disruption significantly supporting oil prices since hostilities escalated in late February, keeping prices well above pre-war levels.
U.S. inventories and supply response in focus
Elsewhere, industry data released overnight indicated a larger-than-expected drop in U.S. crude inventories for the week ending April 17.
Figures from the American Petroleum Institute showed stockpiles fell by 4.4 million barrels, exceeding expectations for a decline of around 1 million barrels.
Such data often signals a similar trend in official government figures, which are due later on Wednesday.
Continued declines in U.S. inventories are adding to concerns about tightening supply and rising prices linked to the Iran conflict. At the same time, Washington is exploring ways to ease the pressure, including the potential use of the Strategic Petroleum Reserve.
According to reports from Axios, Trump is also considering extending a waiver that allows foreign-flagged vessels to transport fuel between U.S. ports. The measure, initially introduced in mid-March for 60 days, was aimed at improving domestic fuel distribution to counter the impact of higher oil prices caused by the conflict.
U.S. gasoline prices have surged by around 40% since the start of the Iran war.