Oil prices rise as investors eye fragile US-Iran ceasefire

Oil prices rise as investors eye fragile US-Iran ceasefire

On Thursday, Asian markets saw a surge in oil prices during early trading sessions, driven by heightened attention to the tentative US-Iran ceasefire. The agreement, which hinges on a two-week pause in hostilities, has been called into question following recent military actions in the region.

Israel’s targeted strikes in Lebanon have placed pressure on the fragile truce, with Tehran issuing a warning that it would retaliate with a “regret-inducing response” if the attacks continued. This development has reignited concerns about the stability of the pact between the two nations.

“We will respond with a regret-inducing reaction if the attacks persist,” stated Tehran’s officials, highlighting the potential for escalation.

Prices had dropped sharply on Wednesday after the ceasefire was announced, which included plans to reopen the Strait of Hormuz. However, the strait has seen significant disruptions as Iran threatened to target vessels passing through, in reaction to US and Israeli airstrikes on its territory.

Brent crude, the international standard, climbed 3.3% to $97.90, while West Texas Intermediate rose 3.2% to $97.55. These levels remain notably above those observed prior to the conflict’s outbreak on 28 February.