Oil prices rose, and global equities retreated on Thursday as the fragile US-Iran ceasefire story shifted again, with investors worried that the newly announced truce could unravel within hours.
Markets had rallied a day earlier after US President Donald Trump announced a two-week halt in the war and Iran said it would reopen the Strait of Hormuz while peace talks continued. However, fresh tensions quickly shook confidence.
The ceasefire came under pressure after Israel launched a major bombardment of Lebanon. Tel Aviv said its campaign against Iran-backed Hezbollah was not covered by the agreement.
US Vice President JD Vance backed that view, saying Lebanon had never been part of the ceasefire terms. Iran rejected that position and argued the attacks violated the deal.
Iran’s parliament speaker, Mohammad Bagher Ghalibaf, said the “workable basis” for negotiations had already been broken. He cited three alleged US violations: continued attacks in Lebanon, a drone entering Iranian airspace and a denial of Iran’s right to enrichment.
Oil prices dived and stocks surged after President Trump announced a two-week ceasefire with Iran, with US crude futures plunging as much as 16.5% to hit $94 a barrel https://t.co/4EkOX3lkZg pic.twitter.com/g4dzuRmwcn
— Reuters (@Reuters) April 8, 2026Reports said the Strait of Hormuz was shut again, raising fresh concern over global energy supplies. The waterway carries around a fifth of the world’s oil and gas.
Iran also announced alternative routes for ships transiting the strait, citing the risk of sea mines. That added to fears that shipping risks could continue even if diplomacy remains active.
Renewed uncertainty pushed crude prices higher on Thursday. West Texas Intermediate rose about three per cent after plunging more than 16 per cent the previous day.
The ceasefire deal has had an instant impact on global markets. Even as crude oil prices plunged and Australian stocks soared, we're being warned relief at the bowser could still take time. pic.twitter.com/AhKhkObvMR
— 7NEWS Queensland (@7NewsBrisbane) April 8, 2026Brent crude also climbed more than two per cent after a 13 per cent drop. The move showed how quickly sentiment can swing when traders see even a small risk to energy supply routes.
Asian stocks retreat as investors reassess the truce
Equity markets gave back part of their earlier gains. Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul and Taipei all moved lower as investors reassessed the ceasefire’s durability.
Meanwhile, attention turned to expected talks in Pakistan on Friday or Saturday, with Vance leading the US delegation.
Analysts warned that even a formal end to the conflict would not bring an immediate return to normal. Crude prices remain elevated, and damage to regional infrastructure could take months and billions of dollars to repair.
Shipping journal Lloyd’s List estimated that around 800 ships have been stuck in the Gulf since the end of February, when hostilities began. That figure underlined how deeply the conflict has affected trade flows and regional logistics
