Oil prices rise as investors eye fragile US-Iran ceasefire
Oil markets saw an uptick in Asian morning trade on Thursday, driven by renewed interest in the tentative US-Iran truce. Analysts noted the agreement’s potential to stabilize tensions, but its fragility remains a concern. The deal, set to last two weeks, faces scrutiny after Israel intensified strikes in Lebanon, sparking fears of escalation.
Following the recent Israeli attacks, Iran warned of a “regret-inducing response” if hostilities persist. This threat has kept traders cautious, despite the temporary pause in hostilities. On Wednesday, prices had dropped sharply after the announcement of the agreement, which aims to secure the Strait of Hormuz—a vital maritime passage.
Iran’s warning of retaliation against US-Israeli airstrikes has disrupted shipping through the strait. Vessels now face uncertainty as Tehran threatens to target any crossings. The situation has caused volatility, with global benchmarks rebounding on Thursday.
Brent crude prices climbed 3.3% to $97.90, while West Texas Intermediate gained 3.2% to $97.55. Both remain significantly elevated compared to levels before the conflict began on 28 February. The market’s sensitivity to regional developments underscores the ongoing geopolitical risks affecting energy markets.
