(Reuters) <\/p>\n\n\n\n
BEIJING, April 10 – Oil prices rose in early trading on Friday following attacks on Saudi energy infrastructure, and as markets evaluated the risk premium from the ongoing closure of \u200bthe Strait of Hormuz, despite a fragile truce agreed between the U.S. and \u200cIran.<\/p>\n\n\n\n
Brent crude futures gained 83 cents, or 0.87%, to $96.75 a barrel as of 0100 GMT. West Texas Intermediate futures were up $1.04, 1.06%, at $98.91 a barrel.<\/p>\n\n\n\n
“The initial wave of relief following President Trump’s two-week ceasefire announcement has \u200bquickly given way to underlying doubts,” IG market analyst Tony Sycamore said in a \u200bnote.<\/p>\n\n\n\n
Iran<\/a> and the U.S.<\/a> agreed on Tuesday to a two-week ceasefire<\/a> brokered by Pakistan, \u2060but fighting was still taking place<\/a> following the announcement.<\/p>\n\n\n\n “All eyes remain firmly on tanker tracker flows \u200bthrough the Strait of Hormuz for any signs of increased activity ahead of peace talks scheduled \u200bin Pakistan on Friday,” Sycamore said.<\/p>\n\n\n\n Analysts say Pakistan will try to push in the talks<\/a> for a more durable peace agreement but may lack the leverage needed to compel the reopening of the key Strait of Hormuz.<\/p>\n\n\n\n Iran wants \u200bto charge fees for ships passing through the strait under a peace deal, a Tehran official<\/a> \u200btold Reuters on April 7. Western leaders and the U.N.’s shipping agency have pushed back on the idea.<\/p>\n\n\n\n The \u200ccrucial \u2060artery for oil and gas flows has been effectively shut down by the conflict, which began on February 28 when the U.S. and Israel launched air strikes on Iran.<\/p>\n\n\n\n Brent prices could reach $190 a barrel if flows through the Strait of Hormuz remain at the current level, said \u200bJohn Paisie, president of \u200benergy consultants Stratas Advisors.<\/p>\n\n\n\n “If \u2060Iran allows increasing flows the price of oil will be more moderated, but still well above pre-war levels.”<\/p>\n\n\n\n