Crude Prices Climb on Iran Ceasefire Talks, Strait of Hormuz Concerns

Key Details Oil prices rose on April 10 ahead of planned US-Iran ceasefire negotiations set to begin in Islamabad on April 11. Vice President JD Vance will lead the US delegation in talks aimed at establishing a permanent ceasefire agreement. Brent crude climbed 1.8% to $97.68 per barrel, while US benchmark crude gained 1.9% to $99.76 per barrel. Why It Matters The Strait of Hormuz remains largely closed despite US demands to reopen this critical waterway for global oil and gas transport. Deadly Israeli strikes on Lebanon on April 8 raised questions about whether the two-week ceasefire remains intact, adding uncertainty to fuel markets. These geopolitical tensions directly impact diesel and gasoline prices that drivers face at the pump. Price Outlook Barclays analyst Ajay Rajadhyaksha noted that oil prices are unlikely to return to pre-war levels of $65-70 per barrel. The bank predicts Brent crude will average around $85 per barrel for the year. Rajadhyaksha emphasized that ceasefires end wars but don't reverse their economic impacts on energy costs.