Oil Prices Rebound as Middle East Ceasefire Uncertainty Persists
Oil prices rose by over 3% on Thursday after doubts emerged about the fragile two-week Middle East ceasefire. The conflict has raised concerns that energy flows through the crucial Strait of Hormuz will remain restricted, with shippers hesitant to resume transit.
Brent crude futures were up $3.41, or 3.6%, at $98.16 a barrel, while US West Texas Intermediate (WTI) crude rose $4.74, or 5%, to $99.15 a barrel.
Despite the ceasefire, Israel bombed more targets in Lebanon on Thursday, putting the agreement in further jeopardy after its biggest attacks of the war killed over 250 people and threatened to torpedo Donald Trump's truce from the outset.
Market participants were unwilling to strip out the geopolitical risk premium, analysts said, adding there was no clarity on what US-Iran talks would mean for oil flows.