Oil and gas prices rose on Thursday as financial markets reassessed the durability of a fragile ceasefire in Iran. Asian stock markets also retreated after a strong rally on Wednesday, reflecting growing concern that the brief calm in the Middle East may not hold.
The two-week ceasefire announced in Iran appeared increasingly shaky, with reports of continued Israeli attacks on Lebanon and threats of a return to military action from both the United States and Iran. The developments unsettled traders who had initially welcomed the ceasefire as a sign that tensions might ease.
A day earlier, the US and Iran had announced an 11th-hour ceasefire that included an agreement to reopen the Strait of Hormuz, a critical shipping route for global energy supplies. But many questions remained on Thursday, and signs that the truce was already being broken added to market nervousness.
The rise in oil and gas prices reflected those doubts. Energy markets are especially sensitive to any disruption in the Middle East, where conflict can quickly affect supply routes and investor confidence.
Stock markets in Asia had benefited from a strong rebound on Wednesday, but that optimism faded as the situation developed. The latest moves suggest traders were unwilling to assume the ceasefire would hold without further escalation.
For now, markets are focused on whether the ceasefire can withstand the pressure of ongoing regional tensions. The uncertainty around the Strait of Hormuz agreement is also likely to keep energy prices volatile as investors watch for any sign that the truce is unraveling.
