ISLAMABAD: Oil prices and global equities slipped on Wednesday as investors assessed the outlook for US-Iran peace talks after Donald Trump extended the ceasefire at Pakistan’s request while continuing the blockade in the Strait of Hormuz.
With the two-week truce nearing expiry, Trump announced an indefinite extension following a request from mediator Pakistan, saying more time was needed for Tehran’s leadership to prepare a proposal.
Earlier, he had signalled he would not prolong the ceasefire and warned of renewed military action once it ended.
“I have…directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their (Iran’s) proposal is submitted,” Trump wrote on social media.
The move — halting fresh strikes but continuing restrictions on Iranian shipping through the vital waterway — left markets uncertain, with traders awaiting clearer signals.
Oil prices
Tehran, meanwhile, has said it will not attend, citing what it described as unreasonable US demands.
Christopher Wong of Oversea-Chinese Banking Corp said: “The US and Iran may be trying to shore up leverage and playing a game of who blinks first.
“Whatever the outcome, the suspense in the interim may see risk appetite being curtailed but when either side blinks, risk proxies could rally.”
Oil prices edged lower after recent volatility, while equity markets across Asia mostly declined, reflecting investor caution despite hopes for a diplomatic breakthrough.
Analysts warned that prolonged uncertainty could keep markets under pressure, with energy prices likely to surge again if negotiations fail.
Key figures around 0230 GMT
West Texas Intermediate: DOWN 0.3 percent at $89.38 a barrel
Brent North Sea Crude: DOWN 0.2 percent at $98.31 a barrel
Tokyo – Nikkei 225: UP 0.5 percent at 59,653.56 (break)
Hong Kong – Hang Seng Index: DOWN 1.1 percent at 26,191.13
Shanghai – Composite: FLAT at 4,084.94
Euro/dollar: DOWN at $1.1747 from $1.1749 on Tuesday
Pound/dollar: UP at $1.3513 from $1.3511
Dollar/yen: UP at 159.27 yen from 159.25 yen
Euro/pound: DOWN at 86.94 pence from 86.96 pence
New York – Dow Jones: DOWN 0.6 percent at 49,149.38 (close)
London – FTSE 100: DOWN 1.1 percent at 10,498.09 (close)
