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OIL prices edged lower on March 27 after US President Donald Trump postponed a deadline for potential strikes on Iran’s energy infrastructure, offering short-term relief to markets while extending uncertainty over the trajectory of the conflict into April.
Bloomberg cited today that Brent crude, the global benchmark, fell 1.7 per cent to US$106.20 in early Singapore trading, reversing part of the previous day’s 5.7 per cent surge.
US benchmark West Texas Intermediate also declined by as much as 1.5 per cent to US$93.10, following a near five per cent jump a day earlier.
Trump said he had granted Tehran a 10-day window for negotiations, longer than the seven days initially requested, pushing the revised timeline to April 6 and temporarily easing fears of imminent disruption to energy supplies.
Analysts said the extension had reduced immediate market pressure but left underlying risks intact. Ewa Manthey, commodities strategist at ING Groep, warned that geopolitical tensions would continue to support elevated prices.
"Extending the ceasefire takes some near-term heat out of the market, but risks still lean to the upside," she said, noting that around eight million barrels per day remain offline and that critical supply routes in the Persian Gulf are still exposed.
With Iran effectively restricting access through the Strait of Hormuz, a key artery for global energy flows, supply disruptions have intensified concerns over the stability of oil markets. The waterway previously handled about a fifth of global oil shipments.
Prices have surged sharply in recent weeks, with Brent crude rising roughly 45 per cent throughout March, while refined fuel costs such as diesel and jet fuel have climbed even faster, adding strain to businesses and consumers and raising fears of rising inflation coupled with slowing growth.
Market participants remain cautious, according to Carl Larry, an oil and gas analyst at Enverus.
"The market is getting an understanding that there is no certain end to the conflict," he said. "We’re heading into another weekend with risk still to the upside."
The extended deadline also provides Washington with additional time to pursue diplomatic channels while reinforcing its military presence in the region. Trump reiterated that operations could span four to six weeks, adding that the campaign was "ahead of schedule".
Forecasts on the conflict’s duration remain mixed. Analysts at Macquarie Group estimate a 60 per cent probability that the war could end by late March, but warn of a 40 per cent chance it may stretch to June, a scenario that could drive oil prices as high as US$200 per barrel.
Diplomatic progress remains uncertain. Iran, through Tasnim News Agency, confirmed it is awaiting a response after rejecting a US-backed 15-point proposal and submitting its own conditions, including recognition of its authority over the Strait of Hormuz.
Despite ongoing tensions, there have been tentative signs of limited movement in the waterway. Trump said Iran had permitted 10 oil tankers to transit the strait as a goodwill gesture, while US officials indicated that measures, including an insurance programme, are being prepared to support shipping through the vital route.
The developments underscore a market caught between temporary diplomatic reprieve and the persistent threat of escalation, with traders bracing for continued volatility in the weeks ahead. - March 27, 2026
