US-Iran Ceasefire Reports Drive Choppy Oil Prices

This volatility stems from ongoing Middle East conflict and the uncertain reopening of the Strait of Hormuz, a critical maritime chokepoint. Reuters sources, citing Axios, confirmed a 60-day ceasefire agreement was reached, pending US President Donald Trump's approval.

However, Iran's Tasnim news agency countered, stating no memorandum of understanding text has been finalized or confirmed. Earlier, Brent and WTI futures surged over 2% after Iran's Revolutionary Guards targeted a US air base.

Oil trading advisory firm Ritterbusch and Associates noted the market's contrasting responses to bullish developments from Iran and bearish suggestions of a Strait of Hormuz reopening. Official US data also showed crude oil stockpiles fell by 3.3 million barrels last week, less than the 4.1 million barrel draw analysts polled by Reuters expected.

UBS analyst Giovanni Staunovo emphasized the market's heightened sensitivity to Middle East headlines despite these US inventory declines.