Global oil prices slipped slightly as investors weighed the uncertain progress of US-Iran peace discussions and ongoing geopolitical tensions affecting supply routes.
Crude Prices See Minor Decline
According to Beyond Time News, Brent crude futures dropped 21 cents to $98.27 per barrel after briefly touching higher levels earlier in the session. West Texas Intermediate (WTI) also fell 28 cents to $89.39 after reaching an intraday high of $90.71.
Despite the small decline, both benchmarks had gained around 3% in the previous trading session.
Market Focus on Ceasefire and Talks
The market reaction comes after US President Donald Trump announced an extension of the ceasefire with Iran to allow more time for negotiations aimed at ending the ongoing conflict.
However, uncertainty remains over whether Iran or US ally Israel will support the extension. Analysts say the lack of clarity is keeping oil prices range-bound.
Market expert Hiroyuki Kikukawa noted that ongoing tensions and restricted shipping through key routes are limiting price direction. He added that prices are likely to remain steady unless major developments change the situation.
Strait of Hormuz Still a Key Concern
The Strait of Hormuz, a critical global oil route, remains a major concern for traders. Reports indicate shipping activity through the passage has slowed significantly, adding pressure to global supply expectations.
Geopolitical Tensions Add Pressure
Tensions also continue in the Middle East, with reports of rocket fire and ceasefire violations raising concerns of wider instability. Meanwhile, US military activity in the region and ongoing disputes are keeping energy markets cautious.
In Europe, developments related to the Druzhba pipeline and Russian oil exports have also added uncertainty to supply forecasts.
Read more: PSX Falls as US–Iran Tensions and Rising Oil Prices Weigh on Market Sentiment
Oil Inventory Data in Focus
Later this week, the US Energy Information Administration is expected to release fresh inventory data. Early estimates suggest a decline in crude oil stocks, which could influence short-term price movements.
Market Outlook
While supply risks remain elevated, analysts believe oil prices may continue to trade within a narrow range unless major geopolitical changes occur or fighting resumes in key regions.
For now, the global oil market remains highly sensitive to diplomatic developments and supply disruptions, keeping traders alert to any new updates.
