Why Oil Is Climbing Even After US-Iran Ceasefire Extension

Oil prices rose despite a US-Iran ceasefire extension as Hormuz tensions continued. Iranian forces attacked ships and seized vessels, while US maintained a blockade. Brent neared $100, reflecting supply fears. Markets stayed cautious, and inflation rose in the UK. With peace talks uncertain and conflict spreading, the situation remains fragile.

Oil prices moved higher on Wednesday, even after the United States extended its ceasefire with Iran. This shows that markets are still worried about the situation in the Middle East. Brent crude, the global oil benchmark, moved close to 100 dollars a barrel. At the same time, US oil, known as West Texas Intermediate, traded above 90 dollars. Investors are not fully calm because the conflict has not ended. There is still no clear agreement, and tensions remain high.

Why oil prices are rising

Experts say the main reason behind rising oil prices is uncertainty. Even though the ceasefire has been extended, it has not solved the bigger problem. The supply of oil from the Middle East is still at risk.

Susannah Streeter, a market expert, said that shipments from the region are still unclear. This means oil may not reach markets smoothly.

When supply is uncertain, prices usually go up.

Strait of Hormuz remains a key concern

One of the biggest worries is the Strait of Hormuz. This narrow waterway is very important because a large share of the world’s oil passes through it.

Iran has restricted movement in this area since the war began with the United States and Israel. This has made it harder for ships to move freely.

Any problem in this route can affect oil prices across the world.

Fresh attacks raise fears

Adding to the tension, Iranian forces were involved in fresh incidents at sea. Reports said Iranian gunboats attacked at least one container ship in the Strait of Hormuz. The ship was damaged, though no one was hurt.

In another move, Iran said it seized two container ships that were trying to pass through the strait.

These ships were identified as MSC Francesca and Epaminodas. Their last known positions were close to the Iranian coast.

Such actions have raised fears that the situation could worsen again.

More vessels face trouble

According to maritime reports, three commercial ships faced incidents involving gunboats.

One ship was fired upon and damaged. Another was stopped near the Iranian coast. A third ship, named Euphoria, was also targeted while leaving the strait.

These events show that the waterway remains unsafe, even during a ceasefire.

US blockade adds pressure

The United States has continued its blockade of Iranian ports. This means ships going to or coming from Iran are being stopped or checked by US forces.

Recently, US forces boarded a vessel described as “stateless and sanctioned”. This ship was believed to be linked to Iran.

Such actions have increased tension between both sides.

Ceasefire extended but not stable

US President Donald Trump announced that the ceasefire would be extended beyond its original date. The truce first started on April 8. It was extended to give more time for talks.

Trump said the decision came after a request from Pakistan, which is trying to help both sides reach a deal.

However, the ceasefire does not mean peace. There is still no final agreement.

Iran remains cautious

Iran has not fully accepted the ceasefire extension. Reports suggest that Iranian officials are not convinced by the US move.

Some have warned that Iran may try to break the US blockade if needed.

Experts say both countries are trying to gain an advantage before any talks begin.

Global markets react with caution

Stock markets also showed signs of worry. In Europe, major markets like London, Paris, and Frankfurt saw small declines. In Asia, markets were mixed. Some rose slightly, while others fell.

In the United States, the Dow Jones index also closed lower. This shows that investors are being careful and not taking big risks.

Currency markets show minor changes

Currency markets did not see major changes.

The euro and pound rose slightly against the dollar, while the dollar stayed steady against the yen. These small movements reflect the uncertain mood in global markets.

UK inflation rises

In Britain, new data showed that inflation increased to 3.3 percent in March.

Higher oil and gas prices played a big role in this rise.

This shows how the Middle East conflict is affecting everyday life in other countries as well.

Political developments in the US

Away from the conflict, attention is also on the US Federal Reserve.

Kevin Warsh, who may replace Jerome Powell as head of the central bank, faced questions from lawmakers.

He said he would act independently and not be controlled by political pressure.

This comes after Trump criticised current policies and called for lower interest rates.

Pakistan’s role in peace talks

Pakistan is playing an important role as a mediator. Its leaders have asked for more time to help both sides reach an agreement.

However, earlier talks failed, with Iran accusing the US of making too many demands.

It is still unclear if new talks will succeed.

United Nations and global response

The United Nations has welcomed the ceasefire extension. Secretary-General Antonio Guterres said it was a positive step.

However, global leaders are still concerned about the situation in the Strait of Hormuz. Many countries depend on this route for energy supplies.

Conflict spreads to other areas

The impact of the conflict is also being felt in Lebanon. An Israeli strike there killed one person and injured two others. Hezbollah has also launched rockets towards Israel, accusing it of breaking the ceasefire.

This shows that tensions are not limited to one area.

Heavy losses reported

According to official figures, Israeli strikes in Lebanon have killed more than 2,400 people since the war began. This highlights the serious human cost of the conflict.

Life inside Iran remains difficult

People in Iran say life has become harder, even after the ceasefire. A resident said that many people are struggling and not doing well.

This shows that the effects of the conflict are being felt by ordinary citizens.

Future remains uncertain

Right now, the situation is still unclear.

Oil prices remain high, shipping routes are risky, and talks have not yet succeeded. Experts say the coming days will be very important.

If tensions rise again, oil prices could increase further.

The Middle East plays a key role in global energy supply. Any problem in this region can affect fuel prices, transport costs, and even food prices worldwide.

This is why investors, governments, and ordinary people are closely watching events.

(With AFP inputs)