Oil Prices Surge as Iran Alleges U.S. Breach of Ceasefire Terms

Global oil markets experienced a sharp rebound on Thursday as geopolitical tensions flared between Iran and the United States. Brent crude futures for June delivery rose 2.52% to $97.14, while West Texas Intermediate (WTI) for May climbed 2.72% to $96.96 per barrel. The price surge follows a period of extreme volatility, coming just one day after U.S. crude recorded its steepest single-day decline since 2020. The shift in sentiment was triggered by statements from Iranian parliamentary speaker Mohammad Bagher Ghalibaf, who accused the U.S. of breaching a two-week ceasefire agreement. Ghalibaf cited three specific violations: ongoing Israeli strikes in Lebanon, an unauthorized drone entering Iranian airspace, and the denial of Iran's right to enrich uranium. He characterized these actions as part of a historical pattern of U.S. commitment failures. U.S. Vice President JD Vance dismissed the allegations, stating that ceasefires are inherently "messy." Vance clarified that the agreement did not cover operations in Lebanon and reaffirmed the U.S. position that Iran must be prohibited from enriching uranium. Market analysts suggest the current price level presents a strategic window for refiners. Janiv Shah of Rystad Energy noted that prices below $100 per barrel offer an opportunity for opportunistic buying, though he warned that delayed purchases could lead to increased product tightness if physical flows remain constrained.