Oil slipped in early trade while U.S. and Iran discussed extending their cease‑fire, easing fears of Middle‑East supply shocks. ANZ Research analysts cited a media report that the parties may add two weeks to the truce. Front‑month WTI crude fell 0.6% to $90.76 a barrel, while Brent slipped 0.4% to $94.57. Futures on the Mercantile Exchange showed broader bearish sentiment across energy contracts.

Mediators are reportedly pushing for compromises on the reopening of the Strait of Hormuz and Iran’s nuclear enrichment programme, issues that have kept oil markets on edge. Extending the cease‑fire could smooth transit through this chokepoint, reducing the risk of abrupt output cuts that have previously spiked prices. Traders therefore trimmed exposure, reflecting optimism that diplomatic progress may curb volatility.

The modest price dip signals that investors are pricing in a lower probability of supply disruptions, at least in the short term. Energy firms with exposure to Middle‑East logistics may see tighter spreads, while refiners could benefit from marginally cheaper feedstocks. Overall, market pricing now rewards any credible move toward stabilising the region’s oil flow.