Oil Prices Surge Amid US-Iran Ceasefire Concerns
Brent crude climbed more than 2% on Thursday morning after Israel launched strikes in Lebanon. The move reversed a sharp drop that followed a US-Iran ceasefire outline agreed earlier in the week.
Ceasefire and market swings
The ceasefire between the United States and Iran was outlined on Tuesday night. Markets reacted quickly and oil fell sharply on Wednesday as investors hoped for reduced regional risk.
Stock markets rallied on optimism that tankers might soon move freely through the Strait of Hormuz. That route is central to global supply expectations.
Renewed fighting and diplomatic strains
Israel said it carried out more than 100 air strikes across a ten-minute period on Wednesday. Iran’s deputy foreign minister, Saeed Khatibzadeh, called the Beirut strikes a “grave violation” of the ceasefire.
Khatibzadeh said parties across the region must follow the agreement, including US allies. He warned the truce could be undermined if attacks continue.
Shipping concerns at the Strait of Hormuz
The status of the Strait of Hormuz remains disputed. The US reported an uptick in ship traffic, while Iran told vessels the waterway was still closed.
Tanker-tracker firms recorded only a trickle of transits versus pre-war levels. UK foreign secretary Yvette Cooper said “a lot of work needs to be done” to fully reopen the route.
Price levels and volatility
Oil climbed back to about $97 a barrel on Thursday. It had fallen to roughly $90.50 only one day earlier.
Markets have seen several spikes and drops during the conflict. The highest peak so far reached roughly $119, while prices before the Iran war sat near $65–70.
Market commentary
Richard Hunter, head of markets at interactive investor, said relief was showing in market moves. He warned that turning short-term relief into lasting confidence will be difficult.
Hunter noted the ceasefire looked fragile and that threats of Iran withdrawing from the truce existed. He also said White House rhetoric remained forceful while forces stayed in the area.
Traders now weigh the relief around the US-Iran ceasefire against growing concerns about its durability. News-driven moves suggest volatility will likely persist.
Reporting by Filmogaz.com.
