Oil Prices Near $100 as Trump Extends Iran Ceasefire: Report

April 22, 2026: Oil prices hovered near $100 per barrel on Wednesday, with Brent crude at $98.27 and US West Texas Intermediate at $89.29. It is after US President Donald Trump extended a ceasefire with Iran while maintaining a naval blockade that has effectively halted traffic through the Strait of Hormuz, according to a report.

The extension of the ceasefire, announced just hours before its expiry, has done little to ease supply concerns, as the continued closure of the Strait of Hormuz, a key global energy artery, keeps markets on edge. The waterway previously accounted for roughly one-fifth of the world’s oil supply flows.

Oil Prices Remain Elevated Amid Supply Disruption

Benchmark crude prices showed limited movement despite the geopolitical announcement. Brent crude slipped 0.17% to $98.27 per barrel, while US West Texas Intermediate declined 0.42% to $89.29, fluctuating between gains and losses during Asian trading hours.

The muted reaction reflects a market balancing the temporary relief of reduced immediate conflict risk against ongoing structural supply constraints caused by the blockade. With shipping traffic through the Strait of Hormuz at a standstill, traders continue to price in tight global supply conditions.

The continued disruption has reinforced concerns over energy availability, particularly for regions heavily dependent on Middle Eastern oil exports.

Iran Ceasefire Extension Fails to Reopen Key Trade Route

President Trump stated that the ceasefire would be extended indefinitely to allow further negotiations, responding to mediation efforts. However, the US confirmed that naval forces would continue to enforce a blockade on Iranian ports and coastal areas.

This decision effectively prevents the resumption of shipping through the Strait of Hormuz, maintaining a critical bottleneck in global energy logistics. The lack of clarity on whether Iran or Israel has agreed to the extension has further complicated the outlook.

Initial responses from Iran indicated scepticism toward the US announcement, with officials suggesting the move may not hold and warning of potential escalation if the blockade continues.

Global Markets Show Mixed Reaction

Equity markets responded cautiously to the developments. US futures indicated modest gains, with S&P 500 futures rising 0.6% and Nasdaq futures up 0.7% during Asian hours.

In Asia, Japan’s Nikkei index reached a record high, while broader regional indices showed mixed performance. MSCI’s Asia-Pacific index outside Japan declined 0.5% after recent gains, reflecting investor uncertainty.

Technology-driven markets in South Korea and Taiwan continued to rally, supported by strong demand for artificial intelligence-related stocks, partially offsetting concerns from the energy sector.

Analysts noted that markets appear to have largely priced in the ongoing closure of the Strait of Hormuz, with investor sentiment suggesting expectations that peak geopolitical risk may have passed, even as volatility persists.

Strait of Hormuz: Energy Crisis Concerns Intensify in Europe

The geopolitical situation is beginning to impact energy policy decisions, particularly in Europe. The European Commission is expected to outline measures to mitigate rising energy costs, including reducing electricity taxes and coordinating gas storage efforts ahead of summer.

European benchmark gas prices have already risen significantly, climbing approximately one-third compared to levels before the conflict began in late February. The region’s reliance on imported oil and gas continues to expose it to external supply shocks despite increased use of low-carbon energy sources.

The potential for prolonged disruption has raised concerns about a second major energy crisis in Europe within four years.

Ripple effects of the oil market disruption are becoming visible in economic data. In the United States, higher fuel prices contributed to stronger-than-expected retail sales in March, driven by increased spending at fuel stations.

Inflation pressures are also building in other regions. In the United Kingdom, upcoming data is expected to show consumer price inflation rising to 3.3% in March, up from 3% in February, with energy costs playing a key role.

Meanwhile, industries dependent on fuel are beginning to feel the strain. Airlines have warned of potential jet fuel shortages within weeks, prompting European authorities to prepare contingency measures and advise businesses to limit air travel if necessary.

Corporate earnings, including results from major technology and industrial companies, are being closely watched for indications of how firms are managing rising energy costs and supply chain disruptions.

Outlook Hinges on Strait Reopening

Market participants continue to monitor developments around the Strait of Hormuz, which remains the central variable influencing oil prices and global economic stability.

While the ceasefire extension reduces the immediate risk of escalation, the persistence of the blockade keeps supply risks elevated. Analysts suggest that any confirmation of the reopening of the strait could trigger significant market movement.

Until then, oil prices are expected to remain supported at elevated levels, with volatility driven by geopolitical developments and uncertainty surrounding the duration and scale of the crisis.