Brent oil prices edged up in early Thursday trading, approaching $100 as traders reacted to renewed uncertainty over the exact conditions and timing of the ceasefire agreed between the US and Iran. It remains unclear when Iran will reopen the Strait of Hormuz and what the precise terms of that reopening will be. The truce itself appears fragile, as Tehran has voiced discontent over the continuation of Israel’s attacks in Lebanon. Against this backdrop, and despite the general sense of relief felt during the previous session, which saw Brent prices fall as low as $90, oil traders are struggling to price out the risk premium created by the ongoing uncertainty. Until there is further clarity on the precise terms of the agreement between Iran and the US, particularly with regard to energy flows through the Strait, the price of a barrel is unlikely to fall much further below current levels.
Source: ActivTrader
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