Oil prices rebounded sharply on Thursday following accusations from Iran that the United States had breached elements of a two-week ceasefire agreement, sparking renewed concerns over potential disruptions to energy supplies [1]. Mohammad Bagher Ghalibaf, Iran's parliamentary speaker, stated that three aspects of Iran's 10-point truce proposal were violated: ongoing Israeli strikes in Lebanon, a drone entering Iranian airspace, and the denial of Tehran's right to enrich uranium [1]. Ghalibaf emphasized Iran's deep historical distrust toward the U.S., citing repeated violations of commitments [1].
International benchmark Brent crude futures for June delivery climbed 2.52% to $97.14, while U.S. West Texas Intermediate crude futures for May rose 2.72% to $96.96 per barrel [1]. This uptick followed the previous day's largest single-day drop in U.S. crude prices since 2020, highlighting heightened volatility in the oil markets [1].
U.S. President Donald Trump commented that Iran's proposal could serve as a basis for talks, while Vice President JD Vance, speaking from Hungary, acknowledged the complexity of ceasefire agreements and clarified that any ceasefire covering Lebanon was not included in the deal. Vance also reiterated Washington's stance against Iran's uranium enrichment [1].
Janiv Shah, vice president of commodity markets at Rystad Energy, advised refiners to take advantage of oil prices below $100 per barrel for opportunistic buying. However, Shah cautioned that if refiners delay purchases expecting further price declines while physical flows remain constrained, product tightness could worsen even amid de-escalation [1].
CONCLUSION
The renewed rise in oil prices underscores market sensitivity to geopolitical tensions and potential supply disruptions. Analyst commentary suggests refiners may benefit from current price levels, but caution is warranted as product tightness could intensify if buying is delayed. The situation remains fluid, with further developments likely to impact energy markets.