SINGAPORE: Oil prices edged up on Friday despite US President Donald Trump extended a pause in attacks on Iran’s energy plants for 10 days, with investors on edge as an imminent resolution to the conflict looked unlikely.
Brent crude was up $1.59 cents to $106.60 per barrel as of 11:58 a.m. Saudi time, while US West Texas Intermediate futures were up £1.49 cents at $95.97 per barrel.
“Despite talks of de-escalation, oil is trading on war longevity, not just headlines. Any direct damage to oil infrastructure or prolonged conflict could force markets to rapidly reprice higher,” said Priyanka Sachdeva, analyst at Phillip Nova.
While Trump extended to April 6 his deadline for Iran to reopen the Strait of Hormuz or face the destruction of its energy infrastructure, the US has also sent thousands of troops to the Middle East, with Trump weighing whether to use ground forces to seize Iran’s strategic oil hub of Kharg Island.
An Iranian official told Reuters that a 15-point US proposal, conveyed to Tehran by Pakistan, was “one-sided and unfair.”
