Oil prices have gone up again, while stock markets are falling because people are worried about the fragile ceasefire between the United States and Iran.
This comes after Israel carried out heavy attacks on Lebanon. In response, Hezbollah said it fired rockets into northern Israel, accusing Israel of breaking the ceasefire.
Because of fears that the ceasefire could collapse, oil prices increased. West Texas Intermediate crude oil rose by almost 3% on Thursday after dropping more than 16% the day before. Brent crude oil also went up by over 2% after a previous fall of 13%.
At the same time, stock markets in Asia dropped slightly. Cities like Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, and Taipei all recorded small losses during early trading.
Reports from independent analysts show that there has been no major change in the number of ships passing through the Strait of Hormuz, which is a key route for global oil supply.
This is despite earlier claims by the White House that more ships were using the route after the ceasefire between the US and Iran was announced.
A shipping intelligence company, Windward, said only 11 vessels passed through the strait on Wednesday, which is about the same number seen in recent days.
In addition, energy analysts warn that any disruption in the Strait of Hormuz could have serious global consequences, as a large portion of the world’s oil supply passes through the narrow waterway. Traders are closely monitoring developments in the region, with many already adjusting their positions in anticipation of possible supply shocks. The uncertainty has also led to increased volatility in the commodities market, with investors seeking safer assets as tensions remain high.
Experts also note that continued instability in the Middle East could put further pressure on global economies that are still recovering from recent financial challenges. Governments and international organizations are expected to keep a close watch on the situation, while diplomatic efforts may intensify in a bid to prevent a full breakdown of the ceasefire and avoid a wider regional conflict.
