Oil prices rose on Thursday as doubts over a fragile two-week Middle East ceasefire raised concerns that energy flows through the crucial Strait of Hormuz will remain restricted, Reuters reported.
Brent crude futures were up $3.69, or 3.9%, at $98.44 a barrel at 0856 GMT, while U.S. West Texas Intermediate (WTI) crude rose $3.47, or 3.7%, to $97.88 a barrel.
Both benchmarks fell below $100 per barrel in the previous trading session, with WTI recording its biggest decline since April 2020, on optimism the ceasefire would result in a reopening of the strait.
However, analysts said market participants were hesitant to fully strip out the geopolitical risk premium, and that there was no clarity on what U.S.-Iran talks would mean for oil flows.
"The chances of a meaningful (strait) reopening any time soon look dim," said Vandana Hari, founder of oil market analysis provider Vanda Insights, predicting continued volatility in oil prices.
"The futures market looks a bit broken," she said. Otherwise, "prices should have snapped right back to pre-ceasefire levels by now."
The vital waterway connects supply from Gulf producers such as Iraq, Saudi Arabia, Kuwait and Qatar to global markets, and typically carries about 20% of global oil and gas supply.
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