Global oil prices have risen as concerns mount over the stability of a US-Iran ceasefire. Recent Israeli strikes on Lebanon have prompted Iran to warn of severe retaliation. U.S. President Donald Trump stated American forces will remain in the region until Iran adheres to a "real" ceasefire.
Reports that Iran may keep the critical Strait of Hormuz closed due to the attacks have reignited fears of prolonged disruption to energy supplies. Global benchmark Brent crude increased 2% to $96.53 a barrel, and West Texas Intermediate rose 2.8% to $97.02, reflecting market nervousness. Stock markets also saw reversals, with Japan's Nikkei 225 down 0.5%, the UK's FTSE 100 off 0.4%, Germany's Dax down 1.3%, and France's Cac lower by 0.8%.
Uncertainty persists regarding Iran's oversight of vessel movements through the Strait of Hormuz, a key shipping route stipulated to be accessible under the ceasefire. Despite the agreement, warnings have been issued to vessels seeking passage without permission. Vice President JD Vance is scheduled for negotiations with Iran in Pakistan.