Oil prices rise as investors eye fragile US-Iran ceasefire

Oil prices climb as market analysts monitor US-Iran truce

Thursday’s Asian trading session saw global oil prices increase, driven by heightened market focus on the precarious US-Iran ceasefire. The fragile agreement, which aims to halt hostilities for two weeks, came under pressure after Israel intensified its attacks on Lebanon, prompting Tehran to issue a warning about potential retaliation.

Strait of Hormuz tensions disrupt shipping

Iran’s threat to target vessels traversing the Strait of Hormuz led to significant disruptions in maritime traffic. This move was a response to recent US-Israeli airstrikes on Iranian territory, which have raised concerns about the stability of the ceasefire. On Wednesday, oil prices had dropped following the announcement of the deal to reopen the vital waterway.

“We are prepared to take a regret-inducing response if the attacks persist,” stated an Iranian official in response to the ongoing conflict.

Despite the recent dip, prices for key benchmarks remain elevated compared to pre-war levels. Brent crude climbed 3.3% to $97.90, while West Texas Intermediate rose 3.2% to $97.55, reflecting the market’s cautious optimism about the ceasefire’s durability. Analysts suggest that the situation in the Middle East continues to shape global energy markets, with investors closely tracking any shifts in geopolitical dynamics.