US oil prices rise as US-Iran peace talks remain uncertain

TOKYO — US crude futures rose in early trade on Wednesday (April 22), despite Washington's announcement that it would indefinitely extend a ceasefire with Iran, as uncertainty over peace talks persisted and the Strait of Hormuz remained effectively closed.

US West Texas Intermediate crude futures climbed as high as US$90.70 a barrel and traded up 59 cents, or 0.7 per cent, at US$90.26 at 10.15pm GMT (Wednesday, 6.15am SGT). 

The benchmark contract rose 2.8 per cent on Tuesday.

US President Donald Trump said he would indefinitely extend the ceasefire with Iran, hours before it was set to expire, to allow the two countries to continue peace talks to end a war that has killed thousands of people and shaken the global economy.

Trump's announcement appeared to be unilateral, and it was not immediately clear whether Iran, or US ally Israel, would agree to extend the ceasefire, which began two weeks ago.

Trump also said he would continue the US Navy's blockade of Iran's ports and shore, which Iran's leaders have called an act of war.

There was no immediate comment from Iran's most senior leaders, but Tasnim News Agency, affiliated with Iran's Revolutionary Guards, said Iran had not asked for a ceasefire extension and repeated threats to break the US blockade by force.

Shipping traffic through the Strait of Hormuz, which normally handles about 20 per cent of global oil and liquefied natural gas supplies, remained broadly halted on Tuesday with only three ships passing through the waterway in the past 24 hours, shipping data showed.

[[nid:734177]]