The price of oil fell below $100 per barrel on Tuesday evening. This is reported by the news agency Reuters. This is after US President Donald Trump announced on Tuesday evening that the US is extending the ceasefire with Iran.
The price of a barrel of Brent crude oil has been extremely volatile on Tuesday. Earlier in the evening, a White House spokesman said that US Vice President J.D. Vance had not traveled to Pakistan's capital, Islamabad, to participate in negotiations with Iran. The media outlet Axios had otherwise written about this on Tuesday night, Danish time.
This caused the price of oil to rise by more than five percent, reaching a price of around $100 per barrel, writes the news agency Associated Press (AP).
Later in the evening, the price fell again after the US president announced that the ceasefire would be extended until Iran can present "a comprehensive proposal" in the peace talks with the US.
The price of Brent crude oil was around $98.5 per barrel late Tuesday evening, which is still higher than the price was before it emerged that Vance had not traveled to Pakistan after all.
The ceasefire was originally agreed two weeks ago, but was set to expire on Wednesday, Danish time. Iran has not officially commented on Trump's announcement that he has extended it early Wednesday night.
Maintaining blockade
Trump also announced Tuesday evening that the United States is maintaining a blockade against ships sailing via the Strait of Hormuz to and from Iranian ports. The blockade was introduced earlier this month, and Iran has called it a violation of the ceasefire agreement.
Hundreds of ships have been stranded in the Persian Gulf, which lies west of the Strait of Hormuz, since the war in Iran began on February 28.
The strait has been effectively closed to civilian shipping traffic for most of the war due to the risk of attack and because the Revolutionary Guard in Iran has taken control of the important waters.
/ritzau/
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