A dramatic turnaround hit oil markets Thursday, with prices climbing as much as 4% on renewed anxieties over the Strait of Hormuz. The fragile US-Iran ceasefire, just two weeks old, faces skepticism, stoking fears that vital oil supplies from the Middle East could remain choked.
West Asia’s premier oil corridor – lifeline for exports from Saudi Arabia, Iraq, Kuwait, and Qatar – is ground zero for the standoff. Shipping companies are steering clear, awaiting unambiguous ceasefire guarantees, while Iran provides guarded ‘safe routes’ via Revolutionary Guard escorts.
Brent crude climbed 3.31% to $97.89/barrel, and WTI rose 4.2% to $98.38/barrel, rebounding from Wednesday’s 20% crash below $100. Escalating attacks, including Israeli hits on Lebanese Hezbollah and drone strikes in Gulf states, have prompted Iran to reseal the strait.
Post-ceasefire incidents targeted oil assets, such as a Saudi pipeline, underscoring ongoing threats to infrastructure. President Trump vowed sustained US military presence around Iran with ships and jets at the ready.
Financial markets tumbled in response. India’s benchmarks weakened: Sensex down 550+ points (0.72%) near 77,000, Nifty50 off 140 points (0.50%) at 23,800. Asia’s Nikkei, Kospi, and Hang Seng slid up to 1%.
Energy experts predict sustained high prices if Hormuz tensions linger, impacting everything from fuel costs to geopolitical strategies. The ceasefire’s fate will dictate whether this surge is a blip or the new normal.
