Global oil prices rebounded by nearly 3% on Thursday as stock markets retreated, fueled by fears that the fledgling US-Iran ceasefire could collapse following heavy Israeli strikes in Lebanon and retaliatory rocket fire from Hezbollah.
Global energy markets saw a sharp reversal on Thursday, April 9, 2026, as oil prices climbed significantly following reports of a heavy Israeli bombardment in Lebanon. The escalation has cast a shadow over the two-week ceasefire between the United States and Iran, which had only just been brokered by Pakistani mediators 48 hours earlier. West Texas Intermediate (WTI) rose by nearly 3%, recovering from a historic 16% plunge on Wednesday, while Brent crude gained over 2% after its own 13% decline. Investors are increasingly concerned that the “Safe Opening” of the Strait of Hormuz—the world’s most critical oil chokepoint—will remain stalled if regional hostilities reignite, leaving global crude supplies stagnant.
The geopolitical tension spiked in the last two hours after Hezbollah announced it had launched a series of rockets into northern Israel. The militant group described the strikes as a direct response to “ceasefire violations” following the intense Israeli air campaign. This renewed friction in the Levant has triggered a sell-off in global equity markets, with major stock indices declining as traders move toward safe-haven assets. The whiplash in prices underscores the market’s extreme sensitivity to the “Pakistan Accord,” with many analysts warning that a collapse of the truce would lead to an immediate return of the “risk premium” that has plagued energy costs for the last month.
As of Thursday morning, the situation remains highly volatile. While U.S. Defense Secretary Pete Hegseth previously noted that the military remains on standby to target Iranian infrastructure should the ceasefire fail, the immediate threat to the Strait of Hormuz remains the primary concern for the global economy. “The market is reacting to the reality that a ceasefire on paper does not guarantee stability on the ground,” noted one market strategist. With the two-week window for negotiations now in jeopardy, all eyes remain on the strategic waterways and the escalating northern border of Israel for signs of a wider regional conflagration.
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