WTI crude futures extended gains on Thursday, climbing more than 8% to trade above $100 a barrel and partially retracing a nearly 16% plunge from the previous session, the steepest single-day decline since 2020. Investor anxiety over the durability of the ceasefire has intensified, as both the United States and Iran have accused each other of breaching the agreement. At the same time, ongoing Israeli operations against Hezbollah in Lebanon are threatening to undermine the deal, with Iranian officials insisting that Lebanon falls under the ceasefire’s terms.
Meanwhile, the Strait of Hormuz remains effectively closed, with Tehran reportedly requiring military authorization for vessels to pass. In the first 24 hours of the ceasefire, only one oil products tanker transited the strait, according to Reuters. The near shutdown of Hormuz—which handles roughly 20% of global oil and gas flows—has triggered one of the most significant disruptions in energy markets in recent years.
