Oil prices rebounded Thursday after a significant drop, with Brent crude rising to $97.35 a barrel and U.S. WTI at $97.43, as investors weighed whether a U.S.-Iran ceasefire will hold and how long Strait of Hormuz restrictions might persist. After a 15% slide in the previous session, traders paused to assess whether Middle East supply can resume smoothly or if fresh disruptions loom. The ceasefire’s durability remains uncertain amid regional tensions and competing signals from involved parties.
The ongoing risk to regional energy infrastructure keeps the market on edge. Reports of attacks around energy facilities and a pipeline in Saudi Arabia underline the fragility of the region’s supply routes. Israel’s actions against Hezbollah in Lebanon and Iran’s responses have added to the market’s caution, complicating efforts toward a lasting peace accord and fueling volatility in prices near the $100 mark.
Analysts warn that the market could be shifting into a structurally higher price regime, with risk premiums staying elevated until supply lines normalize and geopolitical tensions ease. Traders will be watching for any de-escalation signals, potential changes in OPEC+ policies, and broader demand cues as the two-week ceasefire plays out.
For now, the near-$100 level remains a focal point for traders and policymakers alike. While some expect gas prices at the pump to ease if the ceasefire holds, the headwinds from regional strife suggest that oil markets may continue to swing with headlines.
