Oil markets rebounded on Thursday, with Brent crude futures climbing more than 3% above US $98 per barrel after sharp losses in the previous session, as renewed geopolitical tensions in the Middle East raised fresh concerns over global supply, according to market sources and trading data.
The rebound followed reports that the Strait of Hormuz, a strategic chokepoint through which about 20% of the world’s crude oil and gas supplies transit, remained largely obstructed amid renewed fighting. Iranian state media and Fars News Agency reported that oil tanker traffic through the strait was halted after Israeli strikes on Lebanon, complicating market expectations that a fragile ceasefire would ease supply risks.
The recent two‑week ceasefire agreement between the United States and Iran, aimed at de‑escalating hostilities and reopening oil flows, has already shown signs of strain. Iranian officials say multiple provisions of the ceasefire have been breached, and some regional military actions continue despite diplomatic efforts, raising doubts about the truce’s durability.
U.S. Vice President JD Vance, leading a U.S. delegation to Islamabad for direct talks with Tehran, indicated there are signs that the strait might eventually begin reopening, even as the dispute over whether the ceasefire extends to Lebanese territory persists.
Trading floors reacted to the renewed uncertainty by pushing benchmark crude prices higher on expectations that any prolonged disruption through Hormuz would tighten global oil supply. The move came after Brent had retreated sharply earlier in the week on hopes that the truce would allow safer transit, which initially dampened risk premiums.
Market analysts noted that continued closure or restricted passage through the strait, coupled with broader geopolitical volatility, remains a major upside risk for energy prices.
