Oil prices fluctuate as status of US-Iran peace talks remains unclear

Global oil prices fluctuated in early Asian trading on Wednesday as the status of peace talks between the US and Iran remains unclear.

On Tuesday, US President Donald Trump said he will extend a ceasefire with Iran until talks between the two countries have progressed. He added that the US will continue to blockade Irans ports until Tehran presents a unified proposal.

After opening higher, Brent crude dipped by 0.2% to $98.32 (£72.73) a barrel, while West Texas Intermediate was down by 0.3% at $89.41.

Energy markets have been volatile since the US and Israel attacked Iran on 28 February and Tehran responded with threats to target vessels in the key Strait of Hormuz waterway.

The initial two-week ceasefire had been due to expire on Wednesday evening Washington time. Trump did not give a new deadline for the ceasefire extension.

Trump said on Truth Social that the Iranian government has been seriously fractured and that the US will hold off from launching new attacks after Pakistan called for more time for Tehran to agree a deal.

Vice President JD Vance, who is leading the US negotiations, had been expected to fly to Islamabad in Pakistan for talks on Tuesday. The White House has now said he will not be going.

Iran has also not decided whether to send a delegation to Pakistan for talks with the US, a foreign ministry spokesperson told the BBC.

Iran sees mass redundancies from war with US and Israel