Oil prices edged higher on Thursday, with benchmark Brent crude climbing back above the psychologically significant USD 100-a-barrel level, reflecting renewed strength in the energy markets. Brent rose to $102.09 a barrel, up $0.18, while U.S. crude oil gained 0.42% to trade at $93.35, supported by supply concerns and steady demand expectations across global markets.
Market sentiment toward oil was bolstered after U.S. President Donald Trump announced an extension of the ceasefire with Iran on Wednesday, a move seen as a near‑term de‑escalation signal in the Middle East. While the truce lowered immediate conflict fears, Trump maintained a hardline stance by keeping the US blockade at Strait in place.
Comments from Tehran also shaped price dynamics. The President of the Islamic Republic said Iran remains open to dialogue and agreement, reiterating its willingness to engage constructively. However, he warned that breaches of commitments, continued blockades, and mounting threats remain the main obstacles to genuine negotiations, accusing global powers of hypocrisy and contradictions between rhetoric and action. The remarks reinforced concerns that tensions may not ease meaningfully in the near term.
In equities, Wall Street closed sharply higher, with the Dow Jones jumping about 0.7 per cent, the S&P 500 rising nearly 1 per cent, and the Nasdaq surging around 1.6 per cent, led by strong gains in technology and AI‑linked stocks. However, US equity futures pointed to a cautious open, with Dow futures down 257 points and S&P 500 futures lower by 0.3 per cent.
Any shock related to the Strait of Hormuz puts direct pressure on oil as the Strait is a crucial maritime route connecting the Persian Gulf to the Gulf of Oman, facilitating approximately 20 per cent of global oil shipments.
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