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Oil prices rise slightly as investors wait for clarity following the Iran-Israel ceasefire

Oil prices rise slightly as investors wait for clarity following the Iran-Israel ceasefire
Oil prices rise slightly as investors wait for clarity following the Iran-Israel ceasefire

The oil prices rose in the early trade on Tuesday, after Iran and Israel indicated that they were open to a possible resumption in hostilities despite having called an end to hostilities in response to an appeal by U.S. president Donald Trump.

Brent crude futures were up 13 cents or 0.14% to $94.38 per barrel at 0001 GMT. U.S. West Texas Intermediate was up 11 cents or 0.12% at $91.41 per barrel.

Prices rose as high as 5% the previous session, after renewed Israeli attacks on?Iran. Attacks in Lebanon also reduced the hope of an imminent conclusion to the war. However, gains were pared?after Iran announced that it had ended its military operations against Israel.

Tim Waterer is the chief market analyst for KCM Trade. He said: "While investors are not confident that the truce will last, they do feel some relief at the latest pause in direct strike."

Waterer said that the market is pricing in continued uncertainty, rather than a permanent resolution.

Iran and Israel announced that they had ceased their attacks after President Donald Trump's appeal to "stop shooting" immediately. However, Tehran stated it would resume its strikes if Israel continued hitting Hezbollah.

Tony Sycamore is a market analyst for IG. He said that while this stopped the situation from snowballing, it did not change the fact that the geopolitical background remains tense and a lasting deal of peace remains elusive.

Benjamin Netanyahu, Israeli Prime Minister, said in a video statement broadcast by Israeli Television that Israel would use force if Iran attacks again.

In an interview with Axios published on Monday, Trump said that he warned Netanyahu he could find himself fighting alone in the event that he returned to war?with Iran.

Waterer stated that the key question is whether or not current de-escalation attempts can translate into a more lasting resolution. Or if we are simply in another temporary lull.

Washington wants to see the Strait of Hormuz reopened, as it was through this strait that a fifth of world oil supply passed before the United States. Israel and the United States launched airstrikes against?Iran in late February.

On Monday, the U.S. The U.S. military reported that forces in the Gulf of Oman disabled an oil tanker after it tried to sail into an Iranian port, in violation of the current blockade against Iran.

(source: Reuters)