Finance
US Oil Prices Rise as US-Iran Peace Talks Remain Uncertain
Published by Global Banking & Finance Review®
Posted on April 21, 2026
3 min readLast updated: April 22, 2026
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U.S. crude rose amid continuing uncertainty over peace talks with Iran and the near-total halt of shipping through the Strait of Hormuz, despite Washington’s unilateral extension of a ceasefire.
Oil prices turn lower as investors assess outlook for US-Iran peace talks
Market Reactions and Geopolitical Developments
By Yuka Obayashi
Oil Price Movements in Asian Trading
TOKYO, April 22 (Reuters) - Oil prices turned lower on Wednesday after rising about $1 at the start of trade in Asia, with investors assessing the outlook for U.S.-Iran peace talks following the U.S. extension of a ceasefire.
Brent crude futures were down 21 cents, or 0.2%, at $98.27 a barrel at 0039 GMT, after touching $99.38 earlier in the session. West Texas Intermediate futures fell 28 cents, or 0.3%, to $89.39, after climbing as high as $90.71.
Both benchmark contracts rose about 3% on Tuesday.
US-Iran Ceasefire and Diplomatic Efforts
Extension of Ceasefire
U.S. President Donald Trump said he would indefinitely extend the ceasefire with Iran, hours before its expiry, to allow talks to continue to end a war that has killed thousands and shaken the global economy.
International Responses and Uncertainties
The move appeared unilateral, and it was not immediately clear whether Iran, or U.S. ally Israel, would agree to extend the truce, which began two weeks ago.
Market Sentiment
"With the outcome of talks still unclear and the Strait of Hormuz closed, the market lacks clear direction," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
"Unless fighting resumes, prices are likely to stay near the current levels for now," Kikukawa said.
US Naval Actions and Iranian Response
Trump also said the U.S. Navy would maintain its blockade of Iran's ports and shore, which Iranian leaders have called an act of war.
There was no immediate comment from Iran's most senior leaders on Trump's ceasefire extension. Tasnim News Agency, affiliated with Iran's Revolutionary Guards, said Iran had not asked for the extension and repeated its position of breaking the U.S. blockade by force.
Impact on Global Oil Supply Routes
Strait of Hormuz Shipping Disruption
Shipping traffic through the Strait of Hormuz, which normally channels about 20% of global oil and liquefied natural gas supplies, remained broadly halted on Tuesday with only three ships passing along the waterway in the past 24 hours, shipping data showed.
Other Regional Tensions
Elsewhere, the Israeli military said Hezbollah fired rockets at its troops in southern Lebanon, accusing the Iran-backed group of violating a ceasefire ahead of U.S.-mediated talks with Lebanon this week. There was no immediate comment from Hezbollah.
European Oil Flows
In Europe, Ukrainian President Volodymyr Zelenskiy said the Druzhba oil pipeline pumping Russian oil onto the continent is ready to resume operation. Three industry sources, however, said Russia is set to stop oil exports from Kazakhstan to Germany via the Druzhba pipeline starting on May 1.
US Oil Inventory and Market Data
Upcoming Inventory Reports
Later on Wednesday, the U.S. Energy Information Administration will publish inventory data.
Recent Inventory Trends
U.S. crude oil inventory fell by 4.5 million barrels last week after three weeks of gain, while gasoline and distillate stock also declined, market sources said, citing American Petroleum Institute figures on Tuesday.
Analysts estimated a 1.2 million-barrel draw of crude for the week ended April 17.
($1 = 0.8520 euros)
(Reporting by Yuka Obayashi; Editing by Nia Williams and Christopher Cushing)
Key Takeaways
- •Crude futures climbed ~0.7% to $90.26, with WTI reaching $90.70 in early U.S. trade, building on a 2.8% gain the prior day (apnews.com).
- •Shipping via the Strait of Hormuz, a key chokepoint handling roughly 20% of global oil and LNG, remains effectively halted with only a few ships transiting in the past 24 hours (aljazeera.com).
- •Markets are jittery as U.S. President Trump’s indefinite extension of the ceasefire appears unilateral; Iran and U.S. allies have not confirmed agreement, sustaining geopolitical risk premium (apnews.com).
References
Frequently Asked Questions about US oil prices rise as US-Iran peace talks remain uncertain
1Why are US oil prices rising?
US oil prices are rising due to ongoing uncertainty over US-Iran peace talks and the closure of the Strait of Hormuz, a vital route for global oil supply.
2What impact does the Strait of Hormuz have on oil prices?
The Strait of Hormuz handles about 20% of global oil and natural gas supplies, so its closure can significantly disrupt supplies and raise prices.
3Did Iran agree to the US-proposed ceasefire extension?
It was not immediately clear if Iran agreed to the US announcement to extend the ceasefire, and Iranian agencies indicated they had not requested it.
4How much did US West Texas Intermediate crude increase?
US West Texas Intermediate crude futures rose as high as $90.70 a barrel, increasing by 0.7% in early trade.
5How is shipping affected in the Strait of Hormuz?
Shipping traffic has been broadly halted, with only three ships passing through in the last 24 hours, affecting global energy transport.