Oil Falls, Stocks Mixed As Trump Extends Iran Truce Indefinitely After Pakistan-mediated Appeal

Oil falls, stocks mixed as Trump extends Iran truce indefinitely after Pakistan-mediated appeal Global oil prices declined while equities traded unevenly on Wednesday as investors reacted to U.S. President Donald Trump’s decision to indefinitely extend a ceasefire with Iran, following a mediation request from Pakistan and concerns over Tehran’s “fractured” leadership forming a unified peace proposal. Oil markets slid and global stock indices showed mixed performance as traders assessed the geopolitical outlook after President Trump extended the Iran ceasefire at the last minute. The extension came just as a two-week truce was about to expire. Trump said the decision followed a request from Pakistan, which has been acting as a mediator in the conflict, and cited the need to allow Iran’s divided leadership more time to present a consolidated proposal for peace talks. He had earlier warned that the United States would resume military action if no agreement was reached by the deadline, but instead opted to prolong the ceasefire while maintaining pressure through continued restrict Financial markets responded caution The Iran–U.S. tensions have disrupted global energy markets for weeks, with the Strait of Hormuz through which a significant share of global oil passes remaining a key flashpoint.

Repeated ceasefire extensions and breakdowns in negotiations have created volatility in both commodities and equities.

Markets are expected to remain sensitive to any diplomatic updates from Washington, Tehran, or Islamabad. Analysts warn that without a concrete agreement, oil price volatility and risk-off trading could persist.