Brent crude rises as Hormuz disruption and Iran reports fuel supply fears

Brent crude oil prices rebounded 2.5% on Thursday, trimming steep losses, as reports from Iranian media and renewed disruption in the Strait of Hormuz raised fresh doubts about a US-brokered ceasefire and heightened concerns over global oil supply.

Brent crude futures were trading near $97 a barrel as of 0550GMT, after tumbling more than 16% on Wednesday to $90, their lowest level in more than a month.

Prices had initially fallen after the United States and Iran agreed to a two-week ceasefire, easing immediate concerns about supply disruptions in the Middle East.

Sentiment shifted after Tasnim News Agency, citing an informed source, reported that Iran could withdraw from the US-backed ceasefire if Israel continued what it described as violations in Lebanon. Iranian media also reported that oil tanker transit through the Strait of Hormuz had halted again following Israeli strikes on Lebanon, despite two tankers passing safely earlier after the ceasefire announcement.

On Thursday, Tasnim said “huge numbers” of vessels were stuck in the strategic waterway. The report came hours after Iran’s state broadcaster IRIB quoted the Ports and Maritime Organization as saying vessels seeking to pass through the strait must coordinate with the Islamic Revolutionary Guard Corps Navy and use designated routes.