-- Crude oil futures gained more than 3% on Thursday as markets assessed accusations from Tehran that US has already breached the two-week ceasefire deal.
The front-month Murban crude contract rose 3.7% at $101.22 per barrel. Brent futures contract climbed 3.8% to $98.33/bbl.
"Prices rebounded as fighting in the Middle East continued, and the ceasefire outlook deteriorated, keeping uncertainty around the Strait of Hormuz firmly in focus," ING analysts noted.
After crashing below $100 in the last session, oil prices are rebounding today as the fragile truce faces immediate accusations of non-compliance.
"Optimism over the ceasefire faded after Tehran said several terms of the agreement had been breached," ING analysts said.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf, said on social media that the US has already violated the 10-point framework proposed by Tehran.
In a Wednesday post on X, Ghalibaf said Washington had breached three clauses of a 10-point proposal put forward by Iran.
He cited what he described as non-compliance with a ceasefire in Lebanon, the reported intrusion of a US drone into Iranian airspace, and the denial of Iran's right to uranium enrichment.
Despite the ceasefire deal, Wood Mackenzie analysts have said that oil and gas flows through the Middle East are still a long way off, with plenty of steps and processes that could last months.
"With a full reopening of the strait unlikely in the near term, oil prices are expected to remain supported, as disruptions linked to reduced output and refinery shutdowns will take time to unwind," ING analysts added.