Crude oil prices rise above $97/bbl after strikes on Lebanon amid US-Iran ceasefire deal, COMEX gold down 0.5%

Crude oil prices in the global market rose above $97 per barrel (bbl) levels during the early trading hours on Thursday, April 9, after Israel continued its military strike against Iran amid US President Donald Trump’s two-week ceasefire agreement in exchange for safe passage for maritime transport via the Strait of Hormuz.

After Trump announced the two-week ceasefire deal with Iran, Brent crude oil prices tanked to $90.40 per bbl level during Wednesday’s market session, but the relief did not last for long, as later during the day, reports started emerging on Israel’s latest strikes on the Gulf nation.

The West Texas Intermediate (WTI) crude oil prices also dropped to $91.85 per bbl after opening at $97.10 per bbl on April 8, before the prices started rising again due to the uncertainty in West Asia.

Oil price remains highly volatile in the current market due to the dynamic conflict in West Asia, which is making global investors cautious over the feasibility of a certain peaceful agreement. The crude oil supply situation via the Strait of Hormuz remains uncertain as the fresh attacks on Lebanon test the fragility of the agreement between the United States and Iran.

Oil prices today

As of 7:25 am (IST), the Brent crude oil futures were trading 0.65% higher at $97.02 per bbl on Thursday, April 9, compared to $96.39 per bbl at the previous commodity market close, according to Investing.com data.

The data also showed that the US-based WTI crude oil prices were also trading 2.74% higher at $97.02 per bbl as of 7:26 am (IST), compared to $94.41 per bbl at the previous trading close due to the heightened uncertainty.

Israel strikes Lebanon

Despite the US’s two-week ceasefire deal with Iran, Israel reportedly launched a large wave of military strikes in Lebanon, killing at least 182 people, while putting additional pressure on the temporary peace deal, which came after six weeks since the beginning of the conflict on February 28.

Israel's strike on Lebanon affects Iran as Hezbollah, the local armed-militant group, is backed by the Gulf nation. Hence, in a proxy war-like situation, Israel’s attacks on Lebanon to damage Hezbollah in turn affects Iran, which sees this moce has a violation of the ceasefire deal in spirit.

According to a BBC report, White House Press Secretary Karoline Leavitt said that Vice President JD Vance will be leading a negotiating team to Pakistan on Saturday to discuss further peace talks amid further reports on the United States and Iran disagreeing on the 10-point plan.

This comes one day after Trump, in his Truth Social post, said that Iran’s 10-point deal is believed to be “a workable basis on which to negotiate.”

Latest reports also suggest that Hezbollah said it has fired rockets at Northern Israel in response to the ceasefire violations in the region. The BBC report also highlighted that the Iran-backed militia also threatened to continue attacks until "Israeli-American aggression" against Lebanon stops.

Gold prices today

The New York Mercantile Exchange-based COMEX gold prices were trading 0.54% lower at $4,752.50 per ounce as of 10:00 pm (EDT) on Wednesday, April 8, compared to $4,777.20 per ounce at the previous market close, according to the exchange data.

The gold prices on Thursday were under pressure as the US dollar recovered some of its losses due to the rebounding demand for the global benchmark currency amid the escalating West Asia situation.

Data collected from Bloomberg US dollar spot index showed that the greenback was trading 0.06% lower at 99.069 as 10:00 pm (EDT), compared to 99.133 at the previous currency market close.

The US dollar recovered from a near 98 level, rising back up again, which is weighing down on the commodity market investors as the inverse relationship between the precious metal and the currency reduced the appeal for gold. People will be able to buy less gold if the price of the US dollar rises in the market, as the currency is used to trade the commodity around the world.