WTI crude futures rose nearly 5% to around $99 per barrel on Thursday, partially retracing a 16.4% plunge from the previous session as renewed tensions in the Middle East cast doubt on the durability of a fragile ceasefire. Prices advanced following reports of increased military activity near the Strait of Hormuz, heightening concerns over potential disruptions to crude shipments, with sources indicating that some tanker traffic has already experienced delays.
The prior sharp selloff had been driven by optimism over a possible truce, which briefly eased supply concerns before sentiment reversed. Persistent uncertainty surrounding the ceasefire continues to fuel volatility, as traders reassess the stability of oil flows through the region.
At the same time, OPEC+ has stuck to its cautious production strategy, and a recent draw in US crude inventories has reinforced expectations for resilient demand. As a result, prices are now nearing levels last seen in 2022.
