Oil markets tense as Trump hints ceasefire may end without deal

Global oil markets are on edge as uncertainty grows over the future of the ongoing U.S.–Iran ceasefire. U.S. President Donald Trump indicated in a recent interview that extending the truce beyond its deadline is unlikely unless a formal agreement is reached in time.

The ceasefire, initially announced on April 7, is now expected to conclude on Wednesday evening (Washington time), slightly later than earlier market expectations. However, Trump made it clear that he does not intend to prolong the arrangement without a concrete deal in place, emphasizing that negotiations will not be rushed under pressure.

He also confirmed that the United States will continue maintaining its naval presence and restrictions near the Strait of Hormuz. According to his stance, access through the critical oil transit route will remain limited until an agreement is finalized.

Tensions escalated after a brief reopening of the Strait last week, which was quickly reversed. Iran tied any sustained reopening to the removal of U.S. maritime restrictions, reinforcing the standoff between the two sides.

Adding to the pressure, Iran’s First Vice President, Mohammad-Reza Aref, warned that maintaining security in the Strait comes with conditions. He suggested that restricting Iran’s oil exports while expecting uninterrupted security for global shipments is not a balanced approach, signaling potential consequences if the situation remains unresolved.

Despite these developments, oil prices showed a slight decline in early Asian trading, reflecting cautious optimism in the market. Traders appear hopeful that diplomatic discussions between the two countries could resume soon, although some analysts believe the market may be overestimating the likelihood of a quick resolution.

Overall, the situation remains fluid, with both geopolitical tensions and supply concerns continuing to influence oil market sentiment.

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