EMEA Oil Update: Prices Bounce as Middle East Truce Hopes Fade
Brent futures gained over 2% on Thursday erasing a portion of yesterday's historic losses as diplomatic friction threatened the newly brokered US-Iran ceasefire deal.The Brent futures contract gained over 2% to $96.97 per barrel. Murban closed at $97.64 on April 8 and was not trading as of the time of publishing this oil price update."Prices rebounded as fighting in the Middle East continued, and the ceasefire outlook deteriorated, keeping uncertainty around the Strait of Hormuz firmly in focus," ING analysts noted.After crashing below $100 in the last session, oil prices are rebounding today as the fragile truce faces immediate accusations of non-compliance."Optimism over the ceasefire faded after Tehran said several terms of the agreement had been breached," ING analysts said.The reversal follows a statement from Iranian Parliament Speaker Mohammad Bagher Ghalibaf, who claimed on social media that the US has already violated the 10-point framework proposed by Tehran.In a Wednesday post on X, Ghalibaf said Washington had breached three clauses of a 10-point proposal put forward by Iran. He cited what he described as non-compliance with a ceasefire in Lebanon, the reported intrusion of a US drone into Iranian airspace, and the denial of Iran's right to uranium enrichment."With a full reopening of the strait unlikely in the near term, oil prices are expected to remain supported, as disruptions linked to reduced output and refinery shutdowns will take time to unwind," ING analysts added.