Oil Prices Rebound as Strait of Hormuz Stays Blocked Despite US-Iran Ceasefire

Iran and the United States agreed on a two-week ceasefire after more than a month of violent attacks.

The truce was conditional on Iran reopening the Strait of Hormuz.

Al Jazeera

Iran's Foreign Minister said passage will only be possible in coordination with the Iranian military.

The strait had been effectively closed since February 28.

Global oil prices reflected the uncertainty over Hormuz.

Brent crude rebounded more than 3% to trade back above $97 a barrel.

Al Jazeera

The rebound came as fighting in the Middle East continued.

Optimism over the ceasefire quickly faded after Tehran said several terms had been breached.

Iran's navy warned vessels crossing without permission will be targeted and destroyed.

Hapag-Lloyd said the situation was fluid and it would need security assurances.

The crisis was costing the container shipping firm $50 to $60 million weekly.

Freight rate platform Xeneta did not expect pre-conflict conditions to return soon.

The ceasefire's sustainability was immediately put to the test as Israel continued military operations in Lebanon.

Pakistan's Prime Minister described the agreement as an immediate ceasefire everywhere, including Lebanon.

AP News

Israeli Prime Minister Netanyahu insisted the deal did not cover Lebanon.

Washington was continuing reconnaissance flights over Tehran despite the ceasefire.