The White House announced an indefinite extension of its ceasefire with Iran on Wednesday.
A U.S. naval blockade of the Strait of Hormuz will remain in place until diplomatic talks conclude. This blockade continues to restrict a significant portion of the global oil supply.
Brent crude futures jumped 3.14% to $98.48 a barrel following the announcement. West Texas Intermediate (WTI) crude prices also climbed as the market reacted to supply uncertainty.
Investors are currently weighing the ceasefire's de-escalation signal against the physical disruption of a vital energy transit route.