Oil prices rose on Thursday after Iran’s Islamic Revolutionary Guard Corps claimed that shipping through the Strait of Hormuz was stopped following what it said was an Israeli ceasefire violation in Lebanon.
Confusion over the scope of the newly announced US-Iran ceasefire and Israel's military campaign in Lebanon continued to disrupt shipping through the Strait of Hormuz, with industry operators adopting a cautious wait-and-see approach.
The two-week ceasefire announced by US with Iran will not restore container shipping operations through the Strait of Hormuz to pre-conflict conditions, with ocean supply chain disruption and elevated rates expected to continue, according to an industry expert.
Oil prices have dropped sharply and stock markets have jumped after the US and Iran agreed a two-week ceasefire deal that includes the reopening of the Strait of Hormuz waterway.
Iran has said that the country’s military will coordinate safe passage through the Strait of Hormuz during the ceasefire.
Oil prices rose on April 7 as a US deadline pressured Iran to reopen the Strait of Hormuz, with President Trump threatening attacks. Brent hit $111.21, WTI reached $114.73, reflecting heightened Middle East tensions.
Iraq could restore crude oil exports to around 3.4 million barrels per day within a week provided the Iran war ends and the Strait of Hormuz reopens, the head of the country’s state-run Basra Oil Company said.
Oil prices went up further on Wednesday, extending a multi-day rally, as the Iran and US blockades of the Strait of Hormuz continued.
The latest proposal by Iran to end the war is unlikely to be accepted by US President Donald Trump, a CNN report said quoting sources.
Oil prices surged past the $105 threshold on Friday as an escalating maritime standoff between Iran and the United States in the Strait of Hormuz rattled global energy markets.
