Oil Prices Hold Steady Near $89 as US-Iran Ceasefire Stalemate Continues
Oil prices stabilized near $89 a barrel Wednesday as traders weighed a stalled US-Iran ceasefire and fresh attacks on Gulf shipping against a surprise build in US crude inventories.
A senior Iranian source told Reuters there is currently no discussion between Tehran and Washington about extending their ceasefire, citing the existing arrangement's undefined start date.
The diplomatic deadlock was matched by attacks from both the US and Houthi forces on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait, with vessel transits through Hormuz falling to a one-week low of around eight on Tuesday, compared to 125-140 daily pre-war average.
OPEC trimmed its 2026 global demand growth forecast by 580,000 barrels per day, while the IEA cut its own demand outlook and now projects a contraction of about 1.6 million barrels per day this year.