Oil prices climbed again on Thursday as fears grew that the new US-Iran ceasefire may already be under pressure. Markets reacted fast after fresh violence in Lebanon raised doubts over whether the two-week truce can hold. Brent crude traded at about $97 a barrel, while US benchmark West Texas Intermediate rose to just above $97. Global stock markets also gave back some of the gains made after the ceasefire was first announced.

Lebanon Fighting Fuels New Tension

The latest strain came after Israel launched major strikes in Lebanon, including attacks in central Beirut. According to AFP reporting, at least 182 people were killed and nearly 900 were wounded on Wednesday. Hezbollah said it fired rockets towards Israel in response, accusing Israel of violating the truce. Iran also warned that the basis for negotiations had already been damaged, pointing to the continued attacks in Lebanon, a drone entering Iranian airspace and disputes over uranium enrichment.

Strait of Hormuz Fears Push Oil Higher

The Strait of Hormuz remains a major flashpoint. It carries about a fifth of the world’s oil and gas, which means any threat there hits markets hard. Although Iran had signalled that the waterway could reopen during talks, uncertainty quickly returned. Reports suggested shipping was still at risk, with Tehran announcing alternative sea routes because of fears over mines in the main navigation zone. That fresh uncertainty helped drive oil higher after a sharp drop the day before.

Why This Matters for South Africans

For South Africans, higher oil prices matter beyond global headlines. When crude rises, pressure can build on local fuel prices and transport costs. The latest market moves show just how quickly international conflict can ripple through economies far beyond the Middle East. Even with talks expected in Pakistan in the coming days, the message from markets is clear: traders are not yet convinced that peace will stick.