Oil markets climbed on Thursday after Iranian officials accused the United States of failing to uphold key parts of a recent two-week ceasefire. The renewed tensions sparked investor worry over potential supply disruptions in the region.
Brent crude for June delivery gained 2.84% to trade at $97.44 per barrel in the morning session of Asian trading hours, while May contracts for West Texas Intermediate advanced 3.52% to $97.73. This rebound followed a significant loss in US crude oil prices seen the previous day, marking the sharpest one-day decline since 2020 of about 20% price swing.
Concerns heightened following remarks from Mohammad Bagher Ghalibaf, speaker of Iran’s parliament, who on Wednesday outlined specific breaches of the truce deal. Ghalibaf pointed to Israeli military operations in Lebanon, a drone incursion into Iranian airspace, and what he referred to as obstruction of Iran’s right to enrich uranium as violations of Iran’s ten-point ceasefire proposal.
Yesterday, US President Donald Trump indicated Iran’s suggested framework might provide grounds for negotiations, but stopped short of an outright endorsement. Visiting Hungary on Wednesday, Vice President JD Vance addressed Iran’s claims, affirming Washington’s stance that uranium enrichment by Iran remains unacceptable. He also clarified that the ceasefire arrangement did not extend to activities involving Lebanon.
