Oil rising after Israel claims Iran has violated ceasefire

Oil is now moving higher again, as doubts emerge over the solidity of the Israel-Iran ceasefire announced overnight.

Brent crude is now trading at $69.67 per barrel – that’s still down 2.5% today, but higher than the $67.50 level it fell to earlier this morning.

Oil could swiftly push higher if the “fragile” Israel-Iran ceasefire falters, warns Kathleen Brooks, research director at XTB:

The oil price dropped sharply on Tuesday after President Trump announced a ceasefire between Iran and Israel. However, while the agreement initially looked solid, this is still a very fluid situation. The IDF announced this morning that missiles were fired into Israel from Iran, which caused the oil price to pare gains, as Brent crude edged back towards $70 per barrel.

The rapid oil price decline earlier today, was a sign that the market is taking this agreement as a done deal. Brent crude had rallied nearly 20% in the past month as a war premium was attached to the price of oil, which is now being unwound. However, if there are more signs that the ceasefire is not holding, we could see the oil price resume its uptrend.