Oil Prices Rise as Iran-Israel Ceasefire Faces Strain

Post by : Bianca Suleiman

Photo: Reuters

Oil prices went up slightly on Wednesday morning after falling in the last two days. Experts say the rise is because the world is carefully watching the shaky ceasefire between Iran and Israel. There were some early signs that the ceasefire might not hold, which made the market nervous.

By 8:15 am, the Brent crude oil for August delivery was trading at $68.12 per barrel on the Intercontinental Exchange. That’s 1.37% more than its price the day before. West Texas Intermediate (WTI), the US oil benchmark for August on the NYMEX, also went up by 1.51%, trading at $65.34 per barrel.

Earlier this week, oil prices had dropped after US President Donald Trump announced a ceasefire between Iran and Israel. The prices had previously jumped when the US bombed three nuclear facilities in Iran over the weekend. That strike had caused major worries about the Strait of Hormuz—one of the world’s most important paths for shipping oil.

Now, markets are waiting to see if the ceasefire will continue. At first, Iran said it didn’t agree to any deal, but later, both Iran and Israel gave signs that they would stop their air attacks. However, there have been fresh reports of new attacks, which has led the US to again call for calm and peace in the region.

India’s Reaction: Supporting Peace and Energy Stability

India also shared its view on the matter. Since India buys more than 85% of its oil from other countries—and about 36% of that oil comes through the Strait of Hormuz—the peace of this region is very important to India.

India's Ministry of External Affairs gave a statement saying they are closely watching the situation, especially the US airstrikes in Iran and Iran’s response. The ministry said, “We are concerned about the safety and peace of the region, but we are glad to see reports of a ceasefire between Iran and Israel. We also appreciate the efforts made by the US and Qatar to help bring peace.”

The statement also added, “We believe that only talks and peaceful discussions can solve the problems in this region. India is ready to help in any way to make sure peace lasts, and we hope everyone involved will work together for safety and calm.”

India also made it clear that the country’s energy security depends on peace in that area. If oil movement through the Strait of Hormuz is blocked, it could raise oil prices, increase India's import costs, and hurt the economy.