Oil prices rebound and stock markets remain cautious amid fears over the Iranian truce

(AFP) Oil prices rebounded Thursday from the previous day's plunge and stock markets retreated in Asian trading amid fears over the fragility of the U.S.-Iran truce and awaiting an effective opening of the Strait of Hormuz.

By 2:30 a.m. GMT, U.S. benchmark West Texas Intermediate (WTI) crude was up 2.36% to $96.61 a barrel and Brent North Sea crude, the global benchmark, was up 2.16% to $96.77.

Oil and gas prices plunged Wednesday following the announcement of a two-week cease-fire between Washington and Tehran, raising hopes for the reopening of Hormuz, a key route for global hydrocarbon transit.

On that day, Brent crude oil yielded more than 13% and WTI around 16%, both below the symbolic barrier of 100 dollars.

A cautious rebound

Caution prevailed again after Iran stated that a truce in Lebanon, which was still under bombardment on Wednesday, is one of its "essential conditions."

Likewise, traders are also hoping for a genuine resumption of passage at Hormuz, where Tehran recommended two alternative routes Thursday in the face of the possible presence of "mines."

The moderation of the markets "is due to the information according to which Iran would close the Strait of Hormuz after the continuation of the Israeli attacks against Lebanon," considered Kathleen Brooks, analyst of XTB.

Meanwhile, the Asian and Oceania stock markets took a breather in Thursday's trading with slight setbacks, after soaring in unison the previous day dragged down by the plunge in crude oil.

By mid-morning the Nikkei index, the star of the Tokyo stock exchange, was down 0.05%, while the South Korean Kospi was down 1.22%.

The Taipei Stock Exchange was down 0.22%, Sydney was flat and Hong Kong lost 0.40%.

"The ceasefire is an undeniable positive point, but it does not constitute a solution. What's striking is how quickly the market has reversed once the pressure has eased," said Nationwide's Mark Hackett, quoted by Bloomberg.

Meanwhile, gold, considered a safe haven amid global uncertainties, gave up 0.17% to $4,726 an ounce.