Oil Prices Rise amid Fragile Iran-Israel Ceasefire, Supply Concerns

Oil prices rebounded modestly after a significant two-day decline, as traders assessed the fragile ceasefire between Iran and Israel brokered by US President Donald Trump. Brent crude rose about 1 percent to near $68 a barrel, while West Texas Intermediate climbed above $65, supported by an industry report indicating US crude stockpiles dropped by over 4 million barrels. Although the US airstrikes on Iran's nuclear facilities set back Tehran's nuclear program only by a few months, tensions eased with both Iran and Israel appearing to honor the ceasefire, despite initial violations and conflicting claims of victory. President Trump publicly rebuked both countries for ceasefire breaches and gave China the green light to continue buying Iranian oil, signaling a nuanced shift in US policy that maintains some sanctions. Market participants remain cautious, closely monitoring the Strait of Hormuz and awaiting official US inventory data, as geopolitical developments and supply fundamentals continue to influence the volatile oil market. The OPEC alliance is also set to consider a further supply boost, while US tariffs on trade partners loom, adding complexity to the economic landscape impacting oil prices.