Global oil prices fluctuated in early Asian trading on Wednesday as the status of peace talks between the United States and Iran remained unclear. Brent crude dipped by 0.2% to $98.32 a barrel after opening higher, while West Texas Intermediate was down by 0.3% at $89.41, according to BBC reporting carried by Ada Derana.
The muted move followed President Donald Trump’s Tuesday decision to extend the ceasefire with Iran indefinitely until talks between the two countries progressed. Trump said the United States would continue to blockade Iran’s ports until Tehran presents a “unified proposal” and gave no new deadline.
Vice President JD Vance, who is leading the US negotiations, had been expected to fly to Islamabad for talks on Tuesday. The White House has now said he will not be travelling. Iran has also not decided whether to send a delegation to Pakistan for talks with Washington, a foreign ministry spokesperson told the BBC.
The initial two-week ceasefire had been due to expire on Tuesday evening Washington time. Energy markets have been volatile since the US and Israel attacked Iran on 28 February, with Tehran responding by threatening vessels in the key Strait of Hormuz waterway.
For Sri Lanka, a net fuel importer, Brent at around $98 per barrel represents continued elevated crude costs that feed through to CPC pricing. The benchmark had surged to around $96 earlier this week after Iran refused to attend the planned Islamabad talks.
