Brent crude for June delivery briefly climbed above US$100 a barrel for the first time in around a week before easing to US$99, still up nearly four per cent on the day. US benchmark West Texas Intermediate rose more modestly.

Trump said earlier the US would refrain from further attacks at Pakistan’s request, giving Iran’s leadership time to present a unified proposal and conclude talks.

Without the extension, the ceasefire was due to expire on Wednesday, with Trump warning of heavy strikes on Iran’s energy sector and civilian infrastructure.

However, prospects for progress in negotiations remain limited. Washington and Tehran have so far failed to agree on a second round of talks despite mediation efforts by Pakistan, which Trump highlighted in his announcement.

The US also intends to maintain its blockade of Iranian maritime trade, a move Tehran sees as an obstacle to renewed diplomacy.