Global oil prices rose in Asian morning trade on Thursday as investors watch developments in the fragile US-Iran ceasefire.
The conditional two-week ceasefire has been tested after Israel launched a wave of deadly strikes on Lebanon, prompting Tehran to warn of a “regret‑inducing response” if the attacks continue.
Oil prices plunged on Wednesday after the announcement of the agreement that includes the reopening of the key Strait of Hormuz waterway.
Traffic through the crucial shipping route has been severely disrupted after Iran threatened to attack vessels that try to cross the strait, in retaliation against US-Israeli airstrikes on Iran.
Global benchmark Brent crude was up 2.3% at $97.02, while US-traded West Texas Intermediate was 2.9% higher at $97.51.
Oil prices remain far higher than they were before the war started on 28th February.
Major Asian markets fell slightly on Wednesday. Japan’s Nikkei 225 index dipped by 0.5%, while the Kospi in South Korea was down 1.2%.
The ceasefire was announced on Tuesday evening Washington time shortly before a 20:00 EDT (00:00 GMT on Wednesday) deadline set by US President Donald Trump.
He had warned that “a whole civilisation will die tonight” if no deal was reached.
One of the conditions of the agreement was that ships would be able to safely use the Strait of Hormuz.
Ships in the Gulf have received a warning from Iran’s navy that any vessels seeking to cross the Strait of Hormuz without permission “will be targeted and destroyed”, the shipping brokerage firm SSY has confirmed.