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Oil price rebounds as traders assess fragile Israel-Iran ceasefire - YAHOO FINANCE
Oil prices climbed by almost 2% on Wednesday as investors digested the fragile ceasefire between Iran and Israel, alongside renewed hopes that the US Federal Reserve may begin cutting interest rates in the near term.
Brent crude rose 1.8% to $68.34 a barrel, while West Texas Intermediate gained 1.7% to $65.49 in early trading.
On Tuesday, US president Donald Trump gave China, Iran’s largest buyer of crude, the green light to continue importing oil from the Islamic Republic, in what appeared to be a bid to reinforce the ceasefire. The move was widely interpreted as undermining long-standing US sanctions on Iranian exports. However, a senior White House official later clarified that sanctions enforcement would remain in place.
The uptick comes after a tumultuous week for oil markets, marked by dramatic swings in sentiment. Prices surged over the weekend following US air strikes on Iranian nuclear facilities that fuelled fears of disrupted crude supply. But markets reversed course sharply when the White House announced a truce between Tehran and Tel Aviv.
"Oil prices remain volatile with Brent crude heading slightly higher on the speculation about hostilities breaking out again. It’s trading above $68 dollars a barrel, also gaining strength from industry data indicating supplies are tighter in the market," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.
