Oil prices climb as Strait of Hormuz faces new disruption

Brent crude oil prices rebounded 2.5% on Thursday, recovering some of Wednesday’s sharp losses, as renewed disruption in the Strait of Hormuz raised doubts about a US-brokered ceasefire and stoked concerns over global oil supply.

Brent futures were trading near $97 a barrel as of 05:50 GMT, after plummeting more than 16% on Wednesday to $90, their lowest level in over a month, News.Az reports, citing Anadolu Agency.

Prices had initially fallen following the announcement of a two-week ceasefire between the United States and Iran, which eased immediate concerns about Middle East supply disruptions.

Market sentiment shifted after Tasnim News Agency, citing an informed source, reported that Iran might withdraw from the US-backed ceasefire if Israel continued what it called violations in Lebanon. Iranian media also reported that oil tanker transit through the Strait of Hormuz had halted again following Israeli strikes on Lebanon, despite two tankers having passed safely after the ceasefire announcement.

On Thursday, Tasnim said “huge numbers” of vessels were stuck in the strategic waterway. The report came hours after Iran’s state broadcaster IRIB cited the Ports and Maritime Organization, stating that vessels seeking to pass through the strait must coordinate with the Islamic Revolutionary Guard Corps Navy and follow designated routes.

News.Az 

By Nijat Babayev