WTI, Brent, Iran ceasefire extension clouds outlook

International benchmark Brent crude and U.S. West Texas Intermediate futures both slid, with Brent declining 0.59% to $97.91 per barrel while the WTI lost 0.95% to $88.82 per barrel as of 2:15 a.m. ET.

Prices declined as Trump said the U.S. would prolong its temporary truce with Iran beyond the previously set deadline, citing a “seriously fractured” political situation within Tehran.

The ceasefire will remain in place until Iranian leaders present a unified proposal to end hostilities with Washington and Israel, he said in a post on Truth Social. In the meantime, the U.S. would continue its blockade of Iran’s ports.

The ceasefire extension underscores the uncertain path toward de-escalation. While the move delays the risk of imminent military strikes, it also highlights deep divisions within Iran’s leadership and the lack of a clear diplomatic breakthrough.

Earlier on Tuesday, oil prices rose after it became clear that Vice President JD Vance had not departed for Pakistan, where peace talks with Iran were supposed to resume.

However, Iranian state news outlet Tasnim reported that negotiators from Tehran had informed their U.S. counterparts through an intermediary in Pakistan that they would not appear for further talks.

“Iran ultimately announced today that under these circumstances, attending the negotiations is a waste of time because the US prevents reaching any suitable agreement,” Tasnim reported.