Oil rises amid fragile Iran-Israel truce

June 09, 2026 (MLN): Oil prices posted modest gains in early trading on Tuesday as investors continued to assess the fragile ceasefire between Iran and Israel, with concerns lingering that hostilities could flare up again despite recent diplomatic efforts.

Currently, Brent crude futures are down by $4.02, or 4.13%, to $93.41 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are up by 4.37%, to $90.16 per barrel by [09:25 am] PST.

Crude markets remained supported by geopolitical uncertainty after both countries signaled a pause in direct military action following calls from U.S. President Donald Trump for an immediate halt to attacks.

However, traders remained cautious as neither side ruled out the possibility of renewed strikes.

Prices had surged as much as 5% in the previous session amid fears that escalating violence in the Middle East could disrupt energy supplies, according to Reuters.

Those gains later eased after Iranian military officials announced the completion of their operations against Israel, reducing immediate concerns over a broader regional conflict.

Market participants said the current calm has done little to eliminate uncertainty surrounding the situation.

While direct confrontations have paused, the risk of renewed military activity continues to influence sentiment across energy markets.

Iran stated that it could resume military action if Israel continues operations against Hezbollah in Lebanon, while Israeli Prime Minister Benjamin Netanyahu warned that Israel would respond forcefully to any future attacks from Tehran.

Meanwhile, Trump revealed in a media interview that he had cautioned Netanyahu against restarting military action, indicating that Israel could face the conflict without U.S. backing if it chose to escalate tensions further.

Investors are now closely watching whether diplomatic efforts can produce a more durable agreement or whether the current pause represents only a temporary break in hostilities.

Another key focus remains the reopening of the Strait of Hormuz, a vital shipping route that normally handles roughly one-fifth of global oil flows.

The waterway has become a central issue in ongoing discussions between Washington and Tehran following military operations launched by the United States and Israel against Iran earlier this year.

Adding to regional tensions, the U.S. military said on Monday that it intercepted and disabled an empty oil tanker in the Gulf of Oman after the vessel allegedly attempted to reach an Iranian port in breach of existing restrictions on Iranian trade.

The combination of geopolitical risks and uncertainty over future supply routes continues to keep oil markets sensitive to developments across the Middle East.

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