West Texas Intermediate (WTI) crude oil prices jumped above $92.50, trading around $92.80 during Asian hours on Thursday, following renewed tensions between the US and Iran amid a fragile ceasefire agreement [1]. The ceasefire, announced Tuesday, halted attacks for two weeks and initially triggered a relief rally across global markets, with the deal hinging on the reopening of the Strait of Hormuz to normal shipping traffic [2]. However, optimism faded quickly as Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, accused the US of violating three parts of Tehran's 10-point proposal, including Israel's continued attacks in Lebanon, a drone entering Iranian airspace, and the denial of Iran's right to enrich uranium [2]. Ghalibaf stated, 'In such situation, a bilateral ceasefire or negotiations is unreasonable' [2].
US Vice President JD Vance responded to these allegations, emphasizing that 'ceasefires are always messy' and reiterating that the US does not recognize Iran's right to enrich uranium. Vance also clarified that the ceasefire agreement did not extend to Lebanon [2]. US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu similarly stated that the ceasefire does not include operations against Hezbollah in Lebanon [1]. Despite the ceasefire, Hezbollah fired rockets toward northern Israel, citing 'ceasefire violations' by the Israeli army, according to Reuters [1].
The reopening of the Strait of Hormuz saw the first ships pass through, but traffic remained low due to ongoing confusion [2]. The Strait is critical for global energy supply chains, and oil prices initially plunged on Wednesday after the ceasefire announcement. However, following Tehran's accusations of US violations, Brent crude futures for June and WTI crude futures for May rebounded in Asian trading on Thursday [2].
US crude oil inventories also rose, with the Energy Information Administration reporting a build of 3.081 million barrels for the week ending April 3, compared to a 700,000-barrel increase the previous week and a market consensus of 5.451 million barrels. This inventory build could cap further upside for WTI prices [1].
Major Asia-Pacific markets trended lower in early Thursday trade, while US futures were little changed after the Dow Jones Industrial Average surged 1,300 points on Wednesday, marking its best day since April 2025 [2]. Additionally, minutes from the Federal Reserve's latest meeting indicated that officials still expect to lower interest rates this year, providing a potential tailwind for risk assets if geopolitical risks remain contained [2].
CONCLUSION
The US-Iran ceasefire initially boosted market sentiment and oil prices fell, but renewed accusations and ongoing regional tensions have reversed this trend, pushing WTI and Brent crude higher. Market volatility remains elevated as geopolitical risks persist, with energy supply concerns and central bank policy both influencing investor outlook.