Global oil prices recorded modest gains on Wednesday despite an extended ceasefire between the United States and Iran, as uncertainty over lasting peace in the Middle East continued to unsettle investors and weigh on financial markets.
Brent crude, the international benchmark, edged closer to the $100 per barrel mark, while the US benchmark, West Texas Intermediate, rose above $90, reflecting ongoing concerns about supply disruptions and geopolitical instability in the region.
Market sentiment remained cautious across Europe, where major stock indices posted slight declines amid fears that the fragile truce may not translate into a long-term resolution.
Analysts say the extension of the ceasefire has done little to restore confidence, with energy markets still reacting to potential supply constraints.
Susannah Streeter, chief investment strategist at Wealth Club, noted that the temporary halt in hostilities has not significantly calmed market nerves, pointing to continued uncertainty around oil shipments from the Middle East.
“The energy market remains on edge as supply routes are still threatened and a clear resolution to the conflict is yet to emerge,” she said.
Adding to tensions, reports emerged that Iranian forces attacked at least one commercial vessel in the Strait of Hormuz, a critical global shipping route, despite the ceasefire extension announced by US President Donald Trump.
The move has further heightened fears of prolonged disruption to energy supplies.
The US has maintained its blockade of Iranian ports while diplomatic efforts, reportedly led by Pakistani intermediaries, continue in a bid to revive stalled negotiations between both sides.
The conflict, which has lasted several weeks following joint US and Israeli military actions against Iran, has significantly impacted global energy markets, with rising oil and gas prices posing risks to economic growth worldwide.
Christopher Wong, a strategist at Oversea-Chinese Banking Corporation, said both sides appear to be leveraging the situation strategically.
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“There is a sense that both parties are testing each other’s resolve, and until there is clarity, investors are likely to remain cautious,” he explained.
Meanwhile, attention is also focused on developments in the United States, where Kevin Warsh, nominated to succeed Federal Reserve Chair Jerome Powell, faced lawmakers during his confirmation hearing.
Warsh assured senators of his independence, amid concerns over political influence on monetary policy.
In the United Kingdom, inflation rose to 3.3 percent in March, driven largely by surging energy costs linked to the Middle East crisis, underscoring the broader economic impact of the conflict.
Across global markets, trading remained mixed. Asian stocks closed with varied performances, while US and European markets showed signs of weakness.
Analysts warn that until a lasting diplomatic breakthrough is achieved, volatility in energy prices and financial markets is likely to persist.