-- Brent futures eased on Tuesday as investors focused on high-stake peace negotiations in Pakistan, while current ceasefire deadline looms.
The Brent futures contract slipped 1% to $94.57 per barrel. Murban closed at $93.04 on April 20 and was not trading as of the time of publishing this oil price update.
However, with President Donald Trump ruling out a ceasefire extension beyond Wednesday evening, oil prices remains trapped between hope for a deal and the threat of renewed escalation.
While prices have pulled back from Monday's highs, ING analysts cautioned that energy markets may be "underpricing" the ongoing disruption, stating that "optimism appears to be clouding the reality of the supply shock."
Trump reportedly stated it is highly unlikely he will extend the ceasefire without a signed deal, reiterating that the US naval blockade of the Strait of Hormuz will remain in force until Iran agrees to a final settlement.
According to a Reuters' report citing a senior Iranian official Tehran is positively reviewing its participation in a second round of peace talks in Islamabad.
As of Tuesday morning, shipping activity through the Strait of Hormuz remains severely limited.
While Iran briefly declared the corridor open on Friday, the weekend seizure of an Iranian vessel by the US led Tehran to reimpose restrictions.
With roughly one-fifth of the world's oil supply at stake, the market is watching out for any signal from the peace negotiations in Islamabad, where negotiators are expected to convene.