WTI crude futures fell below $89 per barrel on Wednesday, giving back some of the previous session’s gains after President Donald Trump extended the US-Iran ceasefire, noting that Tehran’s leadership was “seriously fractured.” He added the truce would remain in place until Iran’s leaders present a “unified proposal” to end the conflict.

Meanwhile, reports indicated Vice President JD Vance canceled a planned trip to Islamabad for negotiations after Tehran informed the US via Pakistan that it would not take part in the meeting.

Iran also said it would not reopen the Strait of Hormuz while the US Navy continues intercepting vessels.

The conflict continues to strain supply, with estimates of demand destruction already nearing 4 million barrels per day and potentially rising to 5 million barrels per day, around 5% of global supply, with Asia expected to bear the brunt of the impact.
Source: Trading Economics