US-Iran Ceasefire Fails to Stem Global Oil Prices

Brent crude oil prices rose again on Thursday (9/4) amid reports from Iranian media and renewed disruptions in the Strait of Hormuz, sparking concerns over global supply and doubts about the US-backed ceasefire.

Brent crude futures climbed 2.5% to near $97 (£76) per barrel at 12.50 WIB, after plummeting more than 16% on Wednesday to around $90 — the lowest level in over a month.

Previously, prices had fallen following the agreement between the United States and Iran for a two-week ceasefire, which eased fears of energy supply disruptions in the Middle East.

However, market sentiment shifted after Iran’s Tasnim news agency reported that Iran could withdraw from the US-backed ceasefire if Israel continues violations in Lebanon.

Iranian media also reported that oil tanker traffic through the Strait of Hormuz has halted again after Israel’s attack in Lebanon, although two ships passed safely after the ceasefire announcement.

Further negotiations will be held in Islamabad on Friday (10/4).

Geopolitical uncertainties are now having a real impact on the energy sector, including fuel supply and prices.

The World Bank assesses Indonesia’s fiscal condition as still relatively strong, even though the government has decided to maintain subsidised fuel prices until the end of 2026.

The government is holding back the surge in domestic flight ticket prices amid rising global jet fuel costs through subsidies, tax incentives, and fuel surcharge adjustments.

Parliament questions the state budget’s resilience against surging global oil prices. Dolfie states that potential additional subsidies could reach Rp204 trillion.