Oil prices declined and global stock markets showed mixed results Wednesday as investors reacted to Donald Trump's decision to extend a ceasefire with Iran indefinitely while maintaining a blockade on the Strait of Hormuz. The move came hours before the original two-week truce was set to expire, with Trump citing a request from Pakistan and the need to allow Iran's "fractured" leadership time to formulate a proposal. "I have… directed our Military to continue the blockade and, in all other respects, remain ready and able and will therefore extend the ceasefire until such time as their (Iran's) proposal is submitted," Trump said in a social media post. Despite avoiding renewed military action, the continued blockade has stalled progress, leaving the fate of peace talks in Islamabad uncertain. US Vice President JD Vance postponed his planned trip amid the lack of an Iranian proposal, while Tehran maintained it would not attend due to what it described as unreasonable US demands. The semi-official Tasnim news agency stated there was no prospect of Iranian officials attending at present. Christopher Wong of Oversea-Chinese Banking Corp noted that both sides appear to be testing resolve, saying, "The US and Iran may be trying to shore up leverage and playing a game of who blinks first." Oil contracts fell, reversing some of Tuesday's three percent gains, as crude remained below $100. Equity markets were divided, with losses in Hong Kong, Sydney, Singapore, Manila, Mumbai and Jakarta, while Tokyo, Shanghai, Seoul, Taipei and Wellington advanced. London opened higher despite UK inflation rising to 3.3 percent, driven by energy costs from the Middle East conflict. Traders remain cautious after Iran briefly allowed ships through the Strait last week, only to reverse the decision following a US ship seizure. Trump accused Iran of ceasefire violations through vessel harassment in the strategic waterway, through which about one-fifth of global oil passes. Analyst Fawad Razaqzada warned that without a deal, oil could exceed $100, pressuring equities. Markets also monitored the Senate confirmation hearing of Kevin Warsh, Trump's nominee to replace Federal Reserve Chair Jerome Powell. Warsh asserted his independence, stating he would "absolutely not" be Trump's puppet, amid the president's calls for faster rate cuts.
Trump extends a ceasefire with Iran while keeping the Strait of Hormuz blockade active, a contradictory stance that maintains pressure without opening diplomatic space. This limbo directly affects global oil flows, on which Nigeria's fuel supply and inflation are precariously dependent. With crude hovering near $98, any spike above $100 could worsen Nigeria's existing energy and cost-of-living challenges. The hesitation in Islamabad peace talks offers no relief for Nigerians already feeling the strain of elevated fuel prices.
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