Oil prices gain as traders doubt prospects of ceasefire in Iran war

Published Sat, Mar 28, 2026 · 12:04 PM

[NEW YORK] Oil prices rose on Friday (Mar 27) and notched weekly gains, reflecting scepticism about prospects for a ceasefire in the month-old Iran war.

Brent crude futures rose by US$4.56, or 4.2 per cent, to US$112.57 a barrel. US West Texas Intermediate (WTI) futures rose US$5.16, or 5.5 per cent, to settle USat $99.64.

The Brent benchmark has jumped 53 per cent since Feb 27, the day before the US and Israel launched strikes against Iran, while WTI has gained 45 per cent since then. On a weekly basis, Brent gained about 0.3 per cent, while WTI gained over 1 per cent.

Traders are cautious about US President Donald Trump’s statements about the Iran talks. An Iranian official told Reuters that a US proposal conveyed to Teheran by Pakistan was “one-sided and unfair”.

“Investors remain focused on the war’s longevity rather than headlines, with any prolonged closure of the strait (of Hormuz) or damage to infrastructure keeping a significant risk premium in prices,” StoneX analyst Alex Hodes said.

Analysts at Macquarie Group said that oil prices will fall quickly if the war begins to wind down soon but still remain above pre-conflict levels. However, prices could rise to US$200 if the war drags on until the end of June, they added.

Elsewhere, Russian oil producers have warned buyers that they could declare force majeure on supplies from major Baltic Sea ports after Ukrainian attacks on Russian energy infrastructure. REUTERS