U.S. oil prices rose on Thursday, but fell back from their trading highs after Israel agreed to negotiations with Lebanon.
west texas intermediate crude oil Futures for May delivery rose more than 3% to close at $97.87 per barrel. International benchmark Brent crude oil futures for June delivery rose more than 1% to settle at $95.92.
U.S. crude soared above $100 a barrel in early trading as markets realized Iran was restricting traffic through the Strait of Hormuz despite a cease-fire agreement with the United States.
The CEO of Abu Dhabi National Oil Company (ADNOC) said on Thursday that the strait was not open to shipping. Sultan Ahmed al-Jaber said in a social media post that Iran had made it clear that ships would need to obtain permission for passage.
“It’s not freedom of navigation. It’s coercion,” the ADNOC chief said.
Crude oil prices since the beginning of the year
The rise in oil prices subsequently eased after Prime Minister Benjamin Netanyahu said Israel would negotiate with Lebanon “as soon as possible.” Israel’s military action in Lebanon against Iran’s ally Hezbollah threatens to unravel the ceasefire between Washington and Tehran.
Iranian Parliament Speaker Mohammad Berger Ghalibaf on Wednesday accused the United States of violating the ceasefire agreement.
“Our deep historical mistrust of the United States stems from its repeated violations of its commitments in all its forms. Unfortunately, this pattern is repeating itself again,” Ghalibaf said in a statement posted on social media.
Ghalibaf said three elements of Iran’s 10-point ceasefire proposal had been violated: continued Israeli attacks in Lebanon, the incursion of Iranian airspace by drones, and the denial of Iran’s right to enrich uranium, he said.
US President Donald Trump said in the US on Tuesday that Iran’s proposal could form the basis for talks. Vice President J.D. Vance responded to the allegations Wednesday during a visit to Hungary.
“Ceasefires are always tricky,” Vance said, referring to reported drone incidents in Iranian airspace. He said the United States maintains that Iran should not be allowed to enrich uranium and that the agreement does not include a ceasefire covering Lebanon.
