Oil prices jump as safe Hormuz passage remains unclear

However, Israel bombed more targets in Lebanon on Thursday, putting the ceasefire in further jeopardy after its biggest attacks of the war on its neighbour killed more than 250 people and threatened to torpedo Donald Trump's truce from the outset.

"Crude futures are taking back some of yesterday’s losses as the Strait of Hormuz remains with just a small fraction of traffic, much less than the market anticipated yesterday," Dennis Kissler, senior vice president of trading at BOK Financial.

"The ceasefire agreements are in question as Israel had continued to strike Lebanon and Vice President Vance is enroute to the Middle East to continue the talks," Kissler added.

The Hormuz waterway connects supply from Persian Gulf producers such as Iraq, Saudi Arabia, Kuwait and Qatar to global markets, and typically carries about 20 per cent of global oil and gas supply.