Oil prices rise as investors eye fragile US-Iran ceasefire

Oil prices rise as investors monitor fragile US-Iran ceasefire

Asian markets opened with a surge in global oil prices on Thursday, driven by renewed speculation about the precarious US-Iran agreement. Analysts noted the fragile truce’s potential to stabilize energy markets, though uncertainty lingered over its durability.

The temporary ceasefire, set to last two weeks, came under pressure after Israel intensified attacks on Lebanon. These strikes triggered warnings from Tehran, which threatened a “regret-inducing response” if hostilities persisted.

“We are prepared to take decisive action if the attacks continue,” said an Iranian official, highlighting the nation’s readiness to escalate tensions.

Wednesday’s oil prices had dipped following the announcement of the deal, which aimed to restore calm around the strategic Strait of Hormuz. However, the waterway’s traffic faced disruption as Iran signaled it might target ships attempting to navigate the route, a move linked to retaliation against recent US-Israeli strikes.

Global benchmark Brent crude climbed 3.3% to $97.90, while US-based West Texas Intermediate increased by 3.2% to $97.55. Prices remain significantly elevated compared to levels before the conflict began on 28 February.