Oil prices rise over 1% amid Israel-Iran ceasefire, Brent at $68/bbl

Global crude oil prices edged higher on Wednesday morning, after a sharp decline in the previous two sessions. The uptick comes as markets closely monitor the fragile ceasefire between Israel and Iran, which remains uncertain after initial violations, experts said.

Around 8:15 am, the August contract of Brent on the Intercontinental Exchange was trading at $68.12 per barrel, higher by 1.37% from its previous close. Similarly, the August contract of West Texas Intermediate (WTI) on the NYMEX rose 1.51% to $65.34 a barrel.

After US president Donald Trump announced the ceasefire on Tuesday, prices fell to levels prior to Israel's attack on Iran on June 13. After US strikes on three nuclear facilities in Iran over the weekend prices initially surged to five high levels on Monday as concerns over the likelihood of the Strait of Hormuz gained momentum.

Also read: Israel-Iran ceasefire: Who blinked first, Netanyahu or Khamenei, and how did the breakthrough happen?

Markets are now watching to see whether the ceasefire will hold. While Iran initially denied reaching a deal, both Tehran and Tel Aviv have since signalled a halt to air assaults. However, there were fresh reports of ceasefire violations, prompting renewed calls for restraint from Washington.

India welcomes truce

India, which imports over 85% of its crude requirements—with nearly 36% of that passing through the Strait of Hormuz—also weighed in, welcoming the de-escalation and offering to contribute to regional peace efforts.

"We have been following developments overnight relating to the conflict between Iran and Israel, including the US action against Iran's nuclear facilities and Iranian retaliation against US military bases in Qatar. While we remain deeply concerned about the prospects for overall and sustained regional security and stability, we welcome reports of a ceasefire between Iran and Israel and the role played by the US and Qatar in bringing it about," according to a statement from the ministry of external affairs.

"We wish to reiterate that there is no alternative to dialogue and diplomacy in order to address and resolve the multiple conflicts in the region. India stands ready to play its part in these efforts and hopes that all concerned parties will work towards sustained peace and stability," it added.

Also read: Mint Quick Edit | West Asia’s ceasefire: The oil market got lucky

India’s energy security is closely tied to peace in the region. Any disruption to crude flows through the Hormuz chokepoint could spike prices, inflate the import bill, and strain the economy.