Oil rises above USD 97 as Asian markets fall on Iran-US ceasefire doubts

Benchmark US crude rose 3.3per cent to USD 97.50 per barrel. Representational Pic

Oil prices rose again to above USD 97 a barrel, while Asian stocks traded lower on Thursday amid scepticism over a fragile ceasefire between the United States and Iran.

Investors were closely watching whether the two-week ceasefire between the United States and Iran was already slipping after a round of deadly Israeli strikes on Lebanon that killed and injured hundreds. Iran again closed the Strait of Hormuz in response to the attacks in Lebanon.

Tokyo's Nikkei 225 dropped 0.9per cent to 55,824.30, while South Korea's Kospi lost 1.6per cent to 5,776.03.

Hong Kong's Hang Seng fell 0.4per cent to 25,801.87, and the Shanghai Composite index was down 0.7per cent to 3,965.70.

Australia's S&P/ASX 200 edged down 0.1per cent, while Taiwan's Taiex was also 0.1per cent lower.

US futures were down more than 0.1per cent.

Oil prices rose on Thursday, reversing an earlier plunge driven by optimism over the temporary ceasefire agreement. Brent crude, the international benchmark, was up 2.4 per cent at USD 97.02 per barrel. It had previously fallen briefly to below USD 92 a barrel following the ceasefire announcement.

Benchmark US crude rose 3.3per cent to USD 97.50 per barrel.

Uncertainty over global energy supply persisted. The Strait of Hormuz, a key chokepoint for energy transport through which about a fifth of the world's oil typically passes, remained largely closed, even as the US repeatedly demanded that it be reopened.

Talks to pursue a permanent end to the war could take place as early as Friday in Pakistan, with US Vice President JD Vance expected to lead the American negotiating team.

Wall Street closed higher on Wednesday following US President Donald Trump's announcement of a two-week ceasefire with Iran late Tuesday.

The S&P 500 jumped 2.5per cent to 6,782.81. The Dow Jones Industrial Average rose 2.9per cent to 47,909.92, while the Nasdaq Composite gained 2.8per cent to 22,635.00.

Amid renewed hopes of de-escalation, shares of United Airlines surged 7.9per cent on Wednesday, American Airlines rose 5.6per cent, and cruise operator Carnival Corporation jumped 11.2per cent, trimming earlier losses linked to rising fuel costs.

In other trading, gold and silver prices declined. Gold fell 0.7per cent to USD 4,743.20 per ounce, while silver dropped 1.6per cent to USD 74.18 per ounce.

The US dollar rose to 158.66 Japanese yen from 158.57 yen, while the euro was trading at USD 1.1668, up from USD 1.1663.

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