Oil Rises After Biggest Drop Since 2020 as Hormuz Stays Blocked

Oil rebounded after its biggest one-day drop since April 2020, as the Strait of Hormuz remained largely blocked and Israeli attacks on Lebanon threatened to derail the fragile ceasefire in the Middle East.

Brent rose toward $97 a barrel after slumping 13% on Wednesday. West Texas Intermediate was also near $97. Iran’s semi-official Fars news agency reported that passage of tankers through the strait was halted after Israeli strikes, although US Vice President JD Vance countered that assertion, saying “we are seeing signs that the straits are starting to reopen.”

On Thursday, two fully laden Chinese oil tankers in the Persian Gulf were approaching the strait, potentially putting them on track to become the first such vessels to cross since the ceasefire was announced. A successful passage is not guaranteed, and there’s been little change in traffic over the past day.