Oil prices break the $100 barrier as confidence in the Washington-Tehran truce wavers

US oil prices recorded a dramatic jump on Thursday, with West Texas Intermediate (WTI) crude surpassing the $100 barrier for the first time since the latest ceasefire took effect.

Market confusion and shipping paralysis

According to the British Financial Times, prices rose by 5% in flash trading, driven by complex geopolitical factors, most notably:

• Doubts about the truce: A state of uncertainty prevails in global markets over the durability of the US-Iran ceasefire on its second day, amid fears of a collapse of initial understandings.
• Hormuz Strait crisis: The situation was further aggravated by the Strait of Hormuz — the most important artery for global energy supplies — remaining in a state of "near-total paralysis", triggering supplier panic over continued supply chain disruptions.

Economic consequences

Oil reaching this price level represents new pressure on global inflation and signals that markets are still treating developments on the ground with great caution, awaiting more stable indicators regarding the continuation of the cessation of hostilities and the securing of maritime trade routes.