Key insights
- WTI crude rebounded after a sharp fall, driven by geopolitical tensions. A ceasefire agreement between the US and Iran is threatened by escalating conflict between Israel and Hezbollah, with Iran accusing both the US and Israel of violations. This instability creates downside risk for US equities due to potential energy price shocks and broader market uncertainty.
BEIJING, April 9 (Reuters) - U.S. crude futures rose on Thursday morning after settling with the biggest fall since April 2020 during the previous trading session, after U.S. President Donald Trump agreed to a two-week ceasefire with Iran.
U.S. West Texas Intermediate (WTI) crude rose $2.68, or 2.84%, to $97.09 a barrel at 2218 GMT.
Israel pounded Lebanon with its heaviest strikes yet on Wednesday, killing hundreds of people and drawing a threat of retaliation from Iran, which suggested it would be "unreasonable" to proceed with talks to forge a permanent peace deal with the United States.
Iran’s parliament speaker said Israel had already violated several conditions of that ceasefire by ramping up its parallel war against the Iran-aligned militia Hezbollah, while the United States had violated the agreement by insisting that Iran abandon its nuclear ambitions.