ABUJA, Nigeria – Global markets turn volatile as oil prices climb and equities retreat amid fears that a fragile ceasefire between the United States and Iran could collapse.
Crude prices rebound on Thursday after steep losses a day earlier, when US President Donald Trump announced a two-week halt in hostilities.
However, tensions resurface after Israel continues strikes in Lebanon, targeting Iran-backed Hezbollah, raising doubts about the scope of the truce.
US Vice President JD Vance says the ceasefire does not cover the Lebanon conflict.
“If Iran wants to let this negotiation fall apart… that’s their choice,” he says.
Iran counters that the agreement has been violated, with parliamentary speaker Mohammad Bagher Ghalibaf warning that continued attacks undermine negotiations.
Markets react sharply, with West Texas Intermediate rising about three percent and Brent crude gaining over two percent, while Asian equities post losses.
Analysts warn that uncertainty around the Strait of Hormuz—a key global oil route—continues to drive volatility.
“Many questions remain… plans from both sides are at odds,” says National Australia Bank analyst Skye Masters.
Despite optimism that oil flows may stabilise, experts caution that prolonged tensions could disrupt supply chains and delay recovery in global markets.
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