Oil prices climbed sharply on Thursday, nearing $100 a barrel, as skepticism grew over the stability of a fragile U.S.-Iran ceasefire, sending ripples across global financial markets.
Benchmark U.S. crude rose 5.4% to $99.44 per barrel, while Brent crude increased 4.1% to $98.70, reversing earlier losses driven by optimism over a temporary truce. The rebound came as renewed tensions in the Middle East heightened concerns over global energy supply.
Doubts over the ceasefire intensified within hours of its announcement, following Israeli airstrikes in Lebanon that resulted in heavy casualties. In response, Iran again closed the Strait of Hormuz — a critical global oil transit route through which roughly 20% of the world’s oil supply passes — further fueling market uncertainty.
Analysts say the continued instability has kept pressure on oil markets, with concerns mounting over prolonged disruptions in energy flows.
The volatility also weighed on equity markets. U.S. futures declined ahead of market open, with the S&P 500 and Nasdaq each falling 0.4%, while the Dow Jones Industrial Average dropped 0.5%. The pullback followed strong gains a day earlier, when markets rallied on news of the ceasefire.
Global markets echoed the cautious sentiment. European indices moved lower at midday, with Britain’s FTSE 100 down 0.3%, France’s CAC 40 falling 0.9%, and Germany’s DAX slipping 1.3%.
Asian markets also closed mostly in the red. Japan’s Nikkei 225 fell 0.7%, South Korea’s Kospi dropped 1.6%, and Hong Kong’s Hang Seng declined 0.5%. China’s Shanghai Composite lost 0.7%, while India’s Sensex fell 1.6%. Australia and Taiwan were among the few markets to post modest gains.
Currency markets saw the U.S. dollar strengthen against the Japanese yen, while the euro edged slightly higher against the dollar.
With uncertainty surrounding the ceasefire and continued tensions in the Middle East, investors remain cautious as markets react to evolving geopolitical risks.
