Oil prices rise as investors eye fragile US-Iran ceasefire
Oil prices rise as investors eye fragile US-Iran ceasefire
Market reactions amid geopolitical tensions
Asian markets saw oil prices increase on Thursday, driven by heightened investor focus on the precarious US-Iran ceasefire. The agreement, which halted hostilities for two weeks, faced scrutiny after Israel intensified its strikes on Lebanon. Tehran warned of a “regret-inducing response” should the attacks persist, signaling potential escalation.
The previous day’s sharp decline in prices followed the announcement of the ceasefire, which aimed to secure the Strait of Hormuz. Iran’s threat to target ships traversing the waterway, in retaliation for US-Israeli air strikes, disrupted maritime traffic and raised concerns about supply chain stability.
“A regret-inducing response” is Tehran’s warning if attacks on Lebanon continue, according to officials.
Price fluctuations and market context
Global benchmark Brent crude climbed 3.3% to $97.90, while US-traded West Texas Intermediate rose 3.2% to $97.55. These gains reflect renewed confidence in the ceasefire, despite lingering uncertainties. Prices remain well above pre-war levels, which were set on February 28 when hostilities began.
Analysts noted that the ceasefire’s survival hinges on regional stability. Iran’s military actions and the US’s diplomatic efforts are critical factors influencing market sentiment. With the Strait of Hormuz still under threat, oil traders remain cautious but optimistic about short-term relief.
