Oil prices jump 4% on uncertain Iran-US ceasefire prospects

Oil prices jump 4% on uncertain Iran-US ceasefire prospects

The US benchmark West Texas Intermediate climbed 4.06% to US$96.73 per barrel, while international oil benchmark Brent North Sea crude rose 3.62% to US$105.63.

A general view of the Johan Sverdrup field centre in the North Sea, 07 January 2020. Johan Sverdrup, situated some 140 km off the south western coast of Norway, is the third largest oil field on the Norwegian continental shelf, with expected resources of 2.7 billion barrels of oil equivalent. EPA
Oil prices have been inching up on the uncertainty over whether Middle East war will resume. (EPA Images pic)
SINGAPORE:
Oil prices jumped 4% Thursday after Iran vowed not to reopen the Strait of Hormuz so long as a US naval blockade remained in place despite a ceasefire extension.

At around 8.25 am, the benchmark US oil contract West Texas Intermediate (WTI) climbed 4.06% to US$96.73 per barrel. International oil benchmark Brent North Sea crude rose 3.62% to US$105.63. Both eased back in the following minutes.

Oil prices have soared since Israel and the US attacked Iran on Feb 28 and they have kept inching up on the uncertainty over whether war will resume.

As the clock ticked for a return to the war that has engulfed the region, US President Donald Trump had said Tuesday he would maintain the truce to allow more time for Pakistani-brokered peace talks.

Iran said it welcomed the efforts by Pakistan but made no other comment on Trump’s announcement.

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