Oil prices fell along with stocks as investors assess the chances of US-Iran peace talks after Donald Trump extended his ceasefire at the eleventh hour but kept his blockade of the Strait of Hormuz in place, reports AFP.

Christopher Wong, a strategist at Oversea-Chinese Banking Corp, said: “The US and Iran may be trying to shore up leverage and playing a game of who blinks first.”

“Whatever the outcome, the suspense in the interim may see risk appetite being curtailed but when either side blinks, risk proxies could rally.”

Both main oil contracts edged down, though they fluctuated in early trade, having risen around three per cent a day earlier.