Oil Prices Near $100 as Iran Ceasefire Violation Sparks Concern

As signs emerge that the ceasefire promise between the United States and Iran may not be upheld, concerns over crude oil supply are growing, pushing international oil prices closer to $100 per barrel. The risks stemming from this international political situation are once again being highlighted. On April 9th (local time), West Texas Intermediate (WTI) crude for May delivery traded at $98.87 per barrel on the New York Mercantile Exchange. Brent crude for June delivery recorded $97.86 on the ICE Futures Europe exchange in London.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf claimed that the United States violated parts of the ceasefire agreement. In a statement, Ghalibaf asserted that the US had repeatedly broken its promises and that this pattern had recurred again. Iran cited Israel's continued airstrikes in Lebanon, drone incursions into Iranian airspace, and the denial of uranium enrichment rights as examples of ceasefire violations.

U.S. Vice President JD Vance acknowledged the complexity of ceasefire negotiations and reaffirmed the stance that Iran's uranium enrichment cannot be allowed. Vance stated that issues related to Lebanon were not included in the scope of the ceasefire.

News related to the ceasefire has heightened concerns about instability in the energy supply chain. International oil prices, which had seen their largest drop the previous day, rebounded within a single day. West Texas Intermediate (WTI) crude for May delivery traded at $98.87 per barrel, and Brent crude for June delivery traded at $97.86, approaching the $100 mark. While some analysts suggest that refiners might use the current price levels as an opportunity to increase purchases, there are also concerns that delaying purchases amidst logistical constraints could exacerbate product shortages.