Oil prices saw a modest recovery after initially falling sharply, as skepticism over the declared Middle East truce between Israel and Iran quickly took hold. Brent crude, the international benchmark, experienced a significant swing, reflecting the market’s uncertainty about the conflict’s de-escalation.
The initial decline in Brent crude was triggered by Donald Trump’s announcement of a “complete and total ceasefire” and Israel’s agreement. However, the subsequent rebound was driven by reports of continued hostilities, including claims from Israel of new Iranian missile attacks.
This rapid price adjustment illustrates the market’s continued focus on geopolitical risk in the Middle East, a key oil-producing region. While there’s an unwinding of some of the “war premium” previously attached to oil, the quick recovery suggests that traders remain highly cautious.
Global stock markets, including the FTSE 100, generally reacted positively to the initial ceasefire news, leading to gains in various sectors. Travel and leisure stocks, in particular, saw a boost, anticipating a more stable regional environment.
