Oil prices gave up some of their gains on Tuesday after President Trump said the US would be extending its ceasefire with Iran, putting a second round of peace talks between the US and Iran on hold for now.

Futures on Brent crude (BZ=F), the international benchmark, traded up by roughly 3.1 % to trade above $93 per barrel, while those on US benchmark West Texas Intermediate crude (CL=F) held onto gains of 3% to trade at $90 per barrel.

President Trump said on Tuesday that the US would be extending its ceasefire with Iran at the request of Pakistan while he waits for a “unified proposal” from Tehran in response to proposals from Washington, according to the Associated Press. The two-week ceasefire was originally understood to be expiring on Wednesday.

Details on timing for the ceasefire extension were not immediately clear, though Trump’s statements implied the US would wait for an Iranian response before moving itself.

“[I have] directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other,” Trump said, per the AP.

Earlier in the afternoon, the White House suspended Vice President JD Vance’s planned trip after Tehran failed to respond to US negotiating positions, the New York Times reported on Tuesday afternoon. Vance had been scheduled to depart for Islamabad, Pakistan, for talks before the two-week ceasefire between the US and Iran expires on Wednesday.

Special envoy Steve Witkoff and President Trump’s son-in-law Jared Kushner, who have been leading negotiations throughout the war, have also not departed the US, the Times reported.

Uncertainty has swirled around the talks over the past 48 hours as various Iranian leaders gave conflicting signals about whether Tehran would send representatives to Pakistan.

Read more: You can trade oil futures. What to know before you start.

State media on Tuesday reported comments from foreign ministry spokesperson Esmaeil Baghaei, saying that Iran had not yet decided whether to participate. The regime has allegedly told mediators that it will send a delegation only if the US lifts its naval blockade, according to the Wall Street Journal.

Trump said on Monday that the US will not remove its blockade of the Strait of Hormuz until a deal is reached, and reiterated that position on Tuesday.

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The US is not expected to immediately begin the bombing campaign that Trump has threatened when the ceasefire ends, US officials told the New York Times.

However, in comments to CNBC on Tuesday morning, President Trump said, “I expect to be bombing because I think that's a better attitude to go in with.”

Trump said in a Truth Social post on Sunday that if Iran doesn’t take the deal the US is offering, “The United States is going to knock out every single Power Plant, and every single Bridge, in Iran. NO MORE MR. NICE GUY!”

Tensions have flared in the Strait of Hormuz, the world’s most critical waterway for global energy flows, after reports of action from both the US and Iran.

The US government on Tuesday said American military forces boarded a sanctioned Iranian oil tanker, following the US’s seizure over the weekend of a separate Iran-flagged cargo tanker. At the same time, gunboats operated by Iran’s Revolutionary Guard Corps. reportedly fired on several vessels in the Strait of Hormuz over the past few days.

The Pentagon is weighing more significant military options if Trump concludes that Iran isn’t negotiating in good faith, according to the New York Times.

Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.cosupport@ZNTKonzern.com.

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