Oil Extends Gains As Iran Crisis Drags On

(RTTNews) - Oil prices traded higher on Wednesday as concerns grew that the Middle East conflict could drag on.

Brent crude futures were up 0.8 percent at $99.27 a barrel after settling 3.5 percent higher the previous day. WTI crude futures edged up by 0.9 percent to $90.46 after climbing 3 percent on Tuesday.

Supply concerns returned to the fore after the second round of talks set to take place between the U.S. and Iran were postponed and U.S. President Donald Trump unilaterally extended the ceasefire indefinitely.

The Trump administration has imposed new sanctions on Iran-linked networks, halted U.S. dollar shipments to Iraq and frozen security cooperation programs with its military.

Iran's military warned that it would immediately strike pre-designated targets if the U.S. launches any new attack on the country.

Trump also said he would keep the naval blockade in place, which Iran's leaders have called an act of war.

Iran dismissed Trump's ceasefire extension as "meaningless" and said the Strait of Hormuz will remain closed until the U.S. blockade on Iranian ports is lifted.

Tasnim News Agency, affiliated with Iran's Revolutionary Guards, said Iran had not asked for a ceasefire extension and repeated threats to break the U.S. Navy's blockade of Iran's ports and shore by force.

Mahdi Mohammadi, a senior adviser to Iranian Parliament Speaker Mohammad Bagher Ghalibaf, termed the ceasefire extension as a ploy "to buy time for a surprise strike", adding the "losing side cannot dictate terms."

Media reports suggest that at least three container ships were hit by gunfire in the Strait of Hormuz today, marking the latest escalation in the region.

Military planners from over 30 nations will hold two-day talks in London from today to draft a coordinated plan to secure shipping and reopen the Strait of Hormuz.