Oil Rebounds As Iran-US Rift Over Ceasefire Raises Market Concerns

Oil prices rebounded on Thursday after Iran accused the United States of violating elements of the two-week ceasefire agreement, raising fresh concerns over a potential escalation that could disrupt global energy supplies.

Brent crude futures for June delivery rose 2.52% to $97.14, while US West Texas Intermediate (WTI) crude for May gained 2.72% to $96.96 per barrel.

The uptick follows a sharp decline a day earlier, when US crude recorded its biggest single-day drop since 2020.

Iran’s parliamentary speaker Mohammad Bagher Ghalibaf on Wednesday alleged that Washington had breached the ceasefire terms, reinforcing Tehran’s long-standing distrust of the US.

Also Read: Iran Shuts Strait Of Hormuz Over Alleged Ceasefire Violation, White House Says ‘Unacceptable’

“The deep historical distrust we hold toward the United States stems from its repeated violations of all forms of commitments — a pattern that has regrettably been repeated once again,” Ghalibaf said in a statement posted on social media.

Shipping companies said they were awaiting greater clarity on ceasefire terms before resuming transit through the Strait of Hormuz, amid continued security concerns.

Iran has issued navigational maps to guide vessels around mined areas and identified designated safe corridors in coordination with its Revolutionary Guards, according to Iranian media reports.

Also Read: ‘If Israel Attacks Lebanon…’: Iran Threatens To Withdraw From Ceasefire, Hormuz Traffic Halted

Analysts at Standard Chartered said risks in the waterway remain elevated. “Transit through the Strait of Hormuz is not suddenly risk-free. It remains at Iran’s discretion,” they said, adding that logistical disruptions, security concerns, higher insurance costs and operational constraints could limit any near-term increase in energy flows.

Regional energy infrastructure also remains vulnerable. Iran has reportedly struck sites in neighbouring countries after the ceasefire, including a Saudi pipeline used to bypass the Strait of Hormuz, according to an oil industry source. Kuwait, Bahrain and the UAE have also reported missile and drone attacks.

Analysts at Haitong Futures said uncertainty persists over the durability of the ceasefire, citing continued attacks in the region and conflicting signals over the status of the Strait of Hormuz.