Oil prices rise as investors eye fragile US-Iran ceasefire
Oil prices rise as investors eye fragile US-Iran ceasefire
Global oil prices climbed during Thursday’s Asian trading session, driven by renewed focus on the precarious US-Iran ceasefire. The agreement, which holds for two weeks, faces scrutiny after Israel intensified its attacks on Lebanon, raising concerns about its stability.
Market Reaction to Ceasefire Developments
Investors are closely tracking the situation as Tehran warned of a “regret-inducing response” should hostilities persist. This statement comes amid fears that the fragile truce could unravel if Israel’s military actions escalate.
“Tehran has made it clear it will not hesitate to retaliate if the attacks continue,” a senior official stated, highlighting the precariousness of the arrangement.
Impact of the Ceasefire Agreement on Oil Markets
Oil prices dropped sharply on Wednesday following the agreement’s announcement, which included the reopening of the Strait of Hormuz. However, the critical shipping route has seen significant delays due to Iran’s threat to target vessels crossing it, in response to US-Israeli airstrikes.
Global benchmark Brent crude reached $97.90 (£73.11) on Thursday, up 3.3%, while West Texas Intermediate climbed to $97.55, a 3.2% increase. Prices remain elevated compared to levels before the conflict began on 28 February.
