Global oil prices are climbing, with Brent crude reaching 99,4 USD per barrel at the close of the 16/4 trading session. US crude WTI also saw a 3,7% increase, settling at 94,7 USD. By the 17/4 session, both oil benchmarks experienced slight declines, trading at 98 USD and 93 USD respectively.

The surge in oil prices stems from investor skepticism regarding the effectiveness of upcoming peace talks between the US and Iran. Many doubt these negotiations will immediately resolve ongoing disruptions to Middle Eastern energy supplies. Conflict in the region is currently stifling about 20% of the global oil and liquefied natural gas supply that transits daily through the Strait of Hormuz.

Brent crude price movements over the past year. Chart: Trading Economics

"We remain doubtful that the conflict can be resolved immediately. Any news released will be followed by conflicting announcements", commented John Evans, an oil market analyst at PVM. Reuters, citing close sources from Iran, reported that US and Iranian negotiators have lowered their expectations for a comprehensive peace agreement. Instead, they are pursuing a temporary memorandum of understanding to prevent the conflict from resuming.

Despite these developments, US President Donald Trump later stated that the US was very close to a deal with Iran. Oil prices showed little reaction to this announcement, nor to Trump's subsequent declaration that Israel and Lebanon had agreed to a 10-day ceasefire.

Meanwhile, the US stock market recorded its second consecutive session of record highs. The S&P 500 rose 0,26% to 7.041 points, and the Nasdaq Composite added 0,36% to 24.102 points, marking its 12th consecutive upward session. Both indices reached new peaks, with the DJIA also gaining 0,2% to surpass 48.500 points. Overall, since the start of the week, the S&P 500 has climbed 3,3% and the Nasdaq 5,2%, while the DJIA saw a 1% increase.

The rally in US stocks followed Trump's announcement of the 10-day ceasefire between Israel and Lebanon. A spokesperson for the Iranian Parliament indicated that Israel halting its attacks on Lebanon was a crucial condition for initiating negotiations between the US and Iran. Trump suggested that the next round of direct talks between Washington and Tehran could take place "next weekend."

Ha Thu (according to Reuters, CNBC)