Global crude oil prices surged sharply on Thursday amid fears that supply from West Asia may not fully resume, as doubts persist over whether the two-week ceasefire between the US and Iran will hold, with the crucial Strait of Hormuz reportedly remaining restricted.

Brent crude futures jumped as much as 3.31 per cent to $97.89 per barrel at 9:06 am. The US West Texas Intermediate (WTI) crude traded at $98.38, up 4.2 per cent from the previous close.

Crude oil benchmarks had slipped up to 20 per cent below the $100-per-barrel mark on Wednesday -- a level they had been averaging since February 28. In that session, US WTI recorded its biggest fall since April 2020 on expectations that the ceasefire involving the US and Iran would ease tensions and lead to the reopening of the Strait of Hormuz.

The waterway -- a key route for oil supplies from Gulf producers including Iraq, Saudi Arabia, Kuwait and Qatar to global markets -- remains at the centre of the conflict.

Reports of Israeli strikes on Lebanon’s Hezbollah have further escalated tensions, while Kuwait, Bahrain and the UAE have also reported missile and drone strikes.

According to rpeorts, Iran has once again closed the Strait of Hormuz following the latest developments.

Shippers said they require greater clarity on the terms of the ceasefire before resuming transit through the waterway.

Iran has issued maps to guide ships around mines in the Strait and designated safe passage routes in coordination with the country’s Revolutionary Guards, Iranian media reported.

Regional oil infrastructure also remains under threat, with Iran reportedly striking sites in neighbouring countries after the ceasefire, including a pipeline in Saudi Arabia that has been used to bypass the blockaded Strait of Hormuz.

Moreover, US President Donald Trump has said that all American ships, aircraft, and military personnel will remain 'in and around' Iran.

On the equities front, domestic benchmark indices Sensex and Nifty traded about 0.7 per cent lower each. Similarly, Asian stocks were also in the red, with key indices -- Nikkei, KOSPI, and Hang Seng -- declining up to 1 per cent.