Oil prices rise as investors eye fragile US-Iran ceasefire
Oil prices climb amid concerns over US-Iran ceasefire stability
Asian markets saw a surge in oil prices during early trading on Thursday, driven by uncertainty surrounding the US-Iran ceasefire. The agreement, which is conditional, faced scrutiny after Israel’s recent attacks on Lebanon raised fears of escalation. Tehran issued a warning of a “regret-inducing response” if the strikes continued, heightening market anxieties.
Strait of Hormuz dispute impacts oil flows
Wednesday’s decline in oil prices followed the announcement of a deal to reopen the Strait of Hormuz. However, Iran’s threat to block maritime traffic through the waterway, as retaliation for US-Israeli airstrikes, caused a disruption in shipping. The route’s importance remains central to global oil supply chains.
“regret-inducing response”
Brent crude, the global benchmark, climbed 3.3% to $97.90, whereas West Texas Intermediate (WTI) rose 3.2% to $97.55. Prices are still notably elevated compared to levels prior to the conflict’s outbreak on February 28. The market’s reaction underscores the delicate balance between geopolitical tensions and energy market dynamics.
