Oil prices experienced a slight decline on Thursday following significant increases in the prior session, influenced by the ongoing impasse in peace negotiations between Iran and the United States, alongside the continued enforcement of trade restrictions through the Strait of Hormuz by both countries. Brent crude futures decreased by 15 cents to $101.76 a barrel, following a settlement above $100 for the first time in over two weeks on Wednesday. West Texas Intermediate futures decreased by 14 cents, settling at $92.82. Both benchmarks concluded Wednesday with an increase exceeding $3, driven by larger-than-anticipated reductions in gasoline and distillate inventories in the U.S., alongside stagnation in peace negotiations.

U.S. President Donald Trump has extended a ceasefire between the nations at the behest of Pakistani mediators; however, both Iran and the U.S. continue to impose restrictions on the transit of vessels through the Strait of Hormuz. The Strait accounted for approximately 20% of daily global oil and liquefied natural gas supplies until the onset of the war at the end of February, marked by attacks from the U.S. and Israel on Iran. Iran took control of two vessels in the Strait of Hormuz on Wednesday, thereby reinforcing its influence over this critical maritime corridor. Trump has also upheld a U.S. Navy blockade of Iran’s maritime trade, while Iranian parliament speaker and chief negotiator Mohammad Baqer Qalibaf stated that a comprehensive ceasefire would only be logical if the blockade were removed.

According to shipping and security sources, the U.S. military has intercepted a minimum of three Iranian-flagged tankers in Asian waters, redirecting them away from areas close to India, Malaysia, and Sri Lanka. With his extension of the ceasefire on Tuesday, Trump once more retreated at the final hour from threats to target Iran’s power plants and bridges. The White House press secretary, Karoline Leavitt, informed reporters that Trump has not established a conclusion date for the prolonged ceasefire. Total exports of crude oil and petroleum products from the United States increased by 137,000 barrels per day, reaching a record 12.88 million bpd, as Asian and European nations sought to secure supplies following disruptions associated with the Iran war.

The Energy Information Administration reported on Wednesday that U.S. crude stocks experienced an increase, whereas gasoline and distillate inventories saw a decline. Crude inventories increased by 1.9 million barrels, contrasting with the expectations set forth in a poll, which anticipated a draw of 1.2 million barrels. U.S. gasoline stocks experienced a decline of 4.6 million barrels, contrasting with analysts’ expectations of a 1.5 million-barrel reduction. Distillate stockpiles decreased by 3.4 million barrels, contrasting with forecasts that anticipated a decline of 2.5 million barrels.