Oil prices edged higher on Wednesday, April 22, as global markets reacted cautiously to ongoing uncertainty surrounding the Middle East conflict, despite an extension of the ceasefire between the United States and Iran.
Benchmark crude prices remained elevated, with Brent North Sea crude nearing $100 per barrel, while US West Texas Intermediate traded above $90, reflecting continued concerns over disrupted energy supplies.
European stock markets slipped, while Asian equities delivered a mixed performance as investors weighed the prospects of renewed peace talks against persistent geopolitical risks.
Susannah Streeter, chief investment strategist at Wealth Club, said: “The ceasefire extension hasn’t done much to calm nerves given that worries remain about the impact of the energy squeeze on the global economy. Shipments from the Middle East are in limbo and a resolution to the conflict remains elusive, and the price of Brent crude, the benchmark, reflects this.”
Tensions remained high after reports that Iranian gunboats attacked at least one container ship in the Strait of Hormuz, a critical global shipping route, despite US President Donald Trump announcing a ceasefire extension to allow more time for diplomacy.
Washington has maintained a naval blockade of Iranian ports while negotiations, mediated by Pakistan, continue. However, Tehran has effectively restricted access through the strait in recent weeks, intensifying pressure on global energy markets.
Christopher Wong, a strategist at Oversea-Chinese Banking Corp, said: “The US and Iran may be trying to shore up leverage and playing a game of who blinks first. Whatever the outcome, the suspense in the interim may see risk appetite being curtailed.”
The ongoing conflict, which escalated after US and Israeli strikes on Iran, has pushed oil and gas prices significantly higher, raising concerns about global economic growth.
Elsewhere, investors are also monitoring developments in US monetary policy. Kevin Warsh, nominated to replace Federal Reserve chair Jerome Powell, told lawmakers during his confirmation hearing that he would act independently of political pressure.
Warsh’s nomination comes amid criticism from Trump over the Federal Reserve’s approach to interest rates, with the president previously urging more aggressive cuts despite rising inflation.
In the UK, recent data showed inflation climbed to 3.3 per cent in March, highlighting the broader economic impact of rising energy costs linked to the ongoing crisis.