WTI crude futures held above $90 per barrel on Wednesday after gaining more than 2% in the previous session, as US–Iran peace efforts stalled and traffic through the Strait of Hormuz remained largely suspended. According to reports, Vice President J.D. Vance canceled a planned trip to Islamabad for negotiations after Tehran informed Washington via Pakistan that it would not attend the talks. Iran also said it would not reopen the Strait of Hormuz as long as the US Navy continues to intercept vessels in the area.
At the same time, President Donald Trump extended the US–Iran ceasefire, saying Iran’s leadership was “seriously fractured.” He stressed that the truce would remain in effect until Iranian leaders present a “unified proposal” to end the conflict. The ongoing war continues to weigh on supply, with estimates of demand destruction already approaching 4 million barrels per day and potentially rising to about 5 million barrels per day—around 5% of global output—with Asia expected to bear most of the impact.
