Oil prices Rise as Iran Accuses US of Ceasefire Breach; Supply Concerns Return 

Mumbai, April 9: Crude oil prices edged higher on Thursday after Iran accused the United States of violating a recently announced ceasefire, rekindling fears of fresh supply disruptions in the already volatile global energy market. 

Brent crude and US West Texas Intermediate (WTI) both saw gains during the session, reversing part of the sharp losses recorded a day earlier when prices had plunged following news of a temporary truce between Washington and Tehran. 

Benchmark Brent crude is up around 2% at about $96.92 per barrel while West Texas Intermediate has risen around 3% at $97.39 per barrel as of 10:13 am.  

The uptick comes as doubts grow over the durability of the two-week ceasefire agreement. Iran has alleged that the US failed to honour elements of the deal, raising concerns that hostilities could resume and disrupt critical oil supply routes. 

At the heart of market anxiety is the Strait of Hormuz — a chokepoint that handles roughly a fifth of global oil flows. Any threat to shipping through the passage has an immediate impact on prices, and uncertainty over access continues to keep traders on edge.  

Ceasefire Relief Short-lived? 

The ceasefire had initially triggered a dramatic sell-off in crude, with prices falling over 10 per cent in one of the steepest single-day declines in years. However, the relief proved short-lived as geopolitical tensions resurfaced almost immediately.  

Iran’s accusation of a breach has added to skepticism among investors, who were already wary of the fragile nature of the truce. Reports of continued military activity in the region and conflicting interpretations of the agreement have further clouded the outlook.  

As a result, oil markets are once again being driven less by fundamentals and more by geopolitics — a pattern that has defined trading in recent weeks. 

Analysts note that even with a ceasefire in place, supply risks remain elevated. Damage to energy infrastructure, restricted shipping movements, and the possibility of renewed conflict mean that prices are likely to remain volatile in the near term. 

The ripple effects are being felt across global markets. Rising oil prices have already weighed on equities, with Asian markets trading cautiously and Indian benchmarks opening lower amid concerns over inflation and input costs.  

Going ahead, market participants will closely track diplomatic developments between the US and Iran. Any sign of escalation could push oil prices sharply higher, while a credible and sustained ceasefire may offer some relief. 

For now, however, the oil market remains caught in a geopolitical tug-of-war — where every headline, accusation, or missile strike has the potential to move prices as much as supply and demand. 

Source: https://oilprice.com/