US crude oil prices rebound as Hormuz disruption, reports from Iran fuel supply fears

US crude oil prices rebounded 6% on Thursday, trimming steep losses, as reports from Iranian media and renewed disruption in the Strait of Hormuz raised fresh doubts about a US-brokered ceasefire and heightened concerns over global oil supply.

The West Texas Intermediate (WTI) crude futures jumped to $100.1 a barrel as of 13000GMT Thursday, after tumbling more than 16% on Wednesday to $90, their lowest level in more than a month.

The international benchmark brent crude futures also climbed 3.5% to $98 a barrel.

Prices had initially fallen on Wednesday after the United States and Iran agreed to a two-week ceasefire, easing immediate concerns about supply disruptions in the Middle East.

Sentiment shifted after Tasnim News Agency, citing an informed source, reported that Iran could withdraw from the US-backed ceasefire if Israel continued what it described as violations in Lebanon. Iranian media also reported that oil tanker transit through the Strait of Hormuz had halted again following Israeli strikes on Lebanon, despite two tankers passing safely earlier after the ceasefire announcement.

On Thursday, Tasnim reported “huge numbers” of vessels were stuck in the strategic waterway. The report came hours after Iran’s state broadcaster IRIB quoted the Ports and Maritime Organization as saying vessels seeking to pass through the strait must coordinate with the Islamic Revolutionary Guard Corps Navy and use designated routes.