Crude oil prices rebounded sharply on Thursday, with Brent crude climbing 2.36% to $104.63/barrel and WTI rising 2.29% to $92.39/barrel, as investors reassess ceasefire prospects following Iran's lukewarm response to US diplomatic overtures. The price recovery signals renewed concern that Middle East hostilities may persist far longer than hoped, perpetuating supply disruptions across global energy markets.
Oilman"s optimism regarding a rapid ceasefire has evaporated as Tehran signaled reluctance to negotiate a regional settlement. Iran's Foreign Ministry stated the country is "studying" the US proposal but remains unwilling to engage in broader Middle East peace talks—a stance that has prompted traders to price in extended supply constraints. Analysts note that Washington's negotiating demands appear steep, creating a risk premium that renders crude quotations vulnerable to further volatility depending on diplomatic developments.
The Strait of Hormuz, through which approximately 21% of global oil and LNG supplies flow, remains functionally closed after four weeks of conflict. The International Energy Agency has characterized the disruption as the most severe in petroleum trade history. TankerMap tracking confirms minimal crude tanker activity in the Arabian Gulf and Persian Gulf shipping lanes, while US crude inventories rose 6.926 million barrels to 456.19 million barrels for the week ending March 20, signaling constrained demand and export pressure.