Brent crude rebounds as doubts over Iran ceasefire raise supply concerns

Brent crude rebounded Wednesday after steep earlier losses as reports from Iranian media cast doubt on the durability of a US-brokered ceasefire, renewing concerns over Middle East oil flows and transit through the Strait of Hormuz.

Brent crude futures were trading near $95 per barrel as of 1445GMT, after falling more than 16% earlier in the day toward the $90 level, their lowest in more than a month.

Prices had dropped after the United States and Iran agreed to a two-week ceasefire, with markets initially pricing in reduced risks to global supply.

Sentiment later turned cautious after Iran’s Fars News Agency reported, citing an Iranian official, that Tehran was preparing “deterrent” strikes against Israel over alleged ceasefire violations in Lebanon.

Tasnim News Agency also reported, citing an informed source, that Iran would withdraw from the US ceasefire if Israel continued what it described as violations in Lebanon.

The renewed anxiety came amid uncertainty over the scope of the ceasefire. Israel has said the truce does not apply to Lebanon, even as the broader agreement was presented as a step toward easing regional tensions and reopening the Strait of Hormuz.

Iranian media also reported that oil tanker transit through the strait had halted again following Israeli strikes on Lebanon, despite two tankers earlier passing safely after the ceasefire announcement. The reports added to concerns that any renewed escalation could again threaten one of the world’s most critical oil chokepoints.