Source Credit : Portfolio Prints
U.S. oil prices climbed sharply on Thursday before paring gains, as easing geopolitical tensions in the Middle East tempered earlier supply fears.
West Texas Intermediate (WTI) crude for May delivery rose more than 3% to settle at $97.87 per barrel, while Brent crude, the international benchmark, gained over 1% to close at $95.92.
Earlier in the session, U.S. crude briefly surged past the $100 mark as concerns mounted over potential disruptions in the Strait of Hormuz. Market sentiment tightened after reports indicated that Iran was restricting maritime traffic through the critical oil chokepoint, despite a ceasefire agreement with the United States.
According to Sultan Ahmed Al Jaber, CEO of the Abu Dhabi National Oil Company, the strait remains effectively closed to free navigation. In a social media statement, he noted that vessels are required to obtain Iranian approval to pass, calling the situation coercive rather than a reflection of open maritime access.
However, the rally lost momentum after Israeli Prime Minister Benjamin Netanyahu signaled a willingness to begin negotiations with Lebanon “as soon as possible.” The announcement eased fears that Israel’s military operations against Hezbollah—an Iran-backed group—could escalate into a broader regional conflict and destabilize the fragile ceasefire between Washington and Tehran.
Meanwhile, tensions remain elevated on the diplomatic front. Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, accused the United States of violating key elements of the ceasefire agreement, citing continued Israeli strikes in Lebanon, an alleged drone incursion into Iranian airspace, and restrictions on Iran’s uranium enrichment activities.
Ghalibaf emphasized that Iran’s longstanding distrust of the United States is rooted in what he described as a repeated pattern of broken commitments.
In Washington, President Donald Trump indicated earlier in the week that Iran’s proposal could form a foundation for future negotiations. Vice President JD Vance, speaking during a visit to Hungary, acknowledged the complexity of maintaining ceasefires, particularly in volatile regions. Addressing the drone incident, he remarked that such agreements are often imperfect, while reiterating the U.S. position that Iran should not be permitted to enrich uranium. He also clarified that the ceasefire terms did not extend to the conflict in Lebanon.
Overall, the day’s price action reflected a market caught between geopolitical risk premiums and tentative diplomatic signals—highlighting the continued sensitivity of global oil markets to developments in the Middle East.
