Oil Prices Surge as Ceasefire Concerns Keep Supply Risks Elevated

Oil prices surged on Thursday as concerns over a fragile two-week Middle East ceasefire and restricted energy flows through the Strait of Hormuz kept supply risks elevated.

The Brent crude futures rose $3.41, or 3.6%, to $98.16 a barrel at 1244 GMT, while U.S. West Texas Intermediate (WTI) crude increased $4.74, or 5%, to $99.15 a barrel.

The previous trading session saw oil prices fall below $100 per barrel on optimism that the ceasefire would lead to the reopening of the strait.

However, Israel's bombing of targets in Lebanon on Thursday put the ceasefire in jeopardy and raised concerns about energy flows through the critical waterway, which carries 20% of global oil and gas supply.