**BREAKING: Oil Markets Volatile as Hormuz Strait Disruptions Continue Despite US-Iran Ceasefire**
Brent crude is giving back earlier gains as a ceasefire between the United States and Iran fails to restore normal shipping operations through the Strait of Hormuz. Rabobank strategist Molly Schwartz reports that oil traffic through the critical waterway remains severely restricted despite the nominal truce. War risk insurance premiums have spiked significantly, with shipowners receiving guidance to suspend transit through the strait pending further security assessments.
The Strait of Hormuz handles approximately one-fifth of global oil supply, making any disruption a major concern for energy markets. While the ceasefire initially triggered optimism, ongoing logistical and insurance barriers are preventing normal flow resumption. Traders and energy companies face continued uncertainty around supply chains and pricing volatility.
**
FXnCO Insight
** Energy traders should prepare for sustained Brent volatility and potential supply premium pricing until insurance markets normalize and shipowners receive clear security guarantees for Hormuz passage.
Source: FXStreet