Oil prices rose on Thursday as concerns deepened over the fragile ceasefire between the United States and Iran, following renewed violence in the region.
The uptick came after reports that Israel carried out heavy bombardment in Lebanon, prompting retaliatory rocket fire from Hezbollah toward northern Israel, which the group described as a response to ceasefire violations.
Benchmark crude prices surged, with West Texas Intermediate (WTI) rising nearly 3%, rebounding from a sharp decline of over 16% earlier in the week. Brent crude also climbed by more than 2% after previously falling about 13%.
Analysts say the rebound reflects growing fears that escalating tensions could disrupt global oil supplies, particularly if instability affects the Strait of Hormuz, a critical route for global energy shipments.
Equity markets across Asia also reacted cautiously, with indices in Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, and Taipei all recording slight declines during early trading.
Investors appear to be weighing the risks of prolonged geopolitical instability, which could impact global trade, energy flows, and economic growth.
Despite heightened tensions, maritime traffic through the Strait of Hormuz reportedly showed little change.
Independent maritime intelligence firm Windward reported that 11 vessels passed through the strait on Wednesday a figure consistent with recent activity levels.
This contrasts with claims from the White House that vessel traffic had increased following the announcement of the ceasefire between the U.S. and Iran.
The combination of military activity, diplomatic uncertainty, and economic volatility has left markets and policymakers on edge.
