Khaberni - Oil prices rose about 5% on Thursday, as doubts surrounding the fragile two-week ceasefire in the Middle East raised concerns about continued restrictions on energy flows through the vital Strait of Hormuz, amid shipping companies' hesitation to resume ship crossings.
Brent crude futures climbed $4.41, or 4.7 percent, to $99.14 a barrel, and West Texas Intermediate crude jumped $7.57, or eight percent, to $99.15 a barrel.
The prices of both benchmark crudes fell below $100 a barrel in the previous session, with West Texas Intermediate crude recording its biggest drop since April 2020 amid optimism that the truce would lead to the reopening of the strait.
However, Israel bombed more targets in Lebanon today, Thursday, which puts the ceasefire at risk after more than 250 people were killed in the most violent attacks Israel has launched on Lebanon in the war, threatening to undermine the truce between the United States and Iran.
The Strait of Hormuz connects the supplies of Gulf producers, such as Iraq, Saudi Arabia, Kuwait, and Qatar, with the global markets, with about 20 percent of oil supplies passing through it.
Navigation through the Strait of Hormuz exceeded only 10 percent of its normal levels today, Thursday, despite the ceasefire between the United States and Iran, as Tehran asserted its control by warning ships to stick to its territorial waters. Some types of crude oil reached new record levels today, amidst the ongoing crisis and fading signs of abating.
Shipping companies said yesterday, Wednesday, that they need more clarity on the ceasefire terms before resuming passage through the Strait of Hormuz. Iranian media reported that Iran deployed maps to guide ships to avoid mines in the waterway and identified safe routes for crossing.
Kuwait, Bahrain, and the UAE reported being hit by missile and drone strikes.
Meanwhile, Goldman Sachs lowered its oil price forecasts for the second quarter of 2026, expecting Brent crude to reach $90 a barrel, and West Texas Intermediate crude to reach $87 a barrel, following the ceasefire.
The bank had previously expected Brent crude to average $99 a barrel and West Texas Intermediate crude to average $91 a barrel.
