Oil and gas prices surged on Thursday amid rising concerns over the stability of a ceasefire in the Middle East, particularly between Iran and Israel. Brent crude, the global benchmark, rose more than 2% to $96.77 a barrel, while New York light crude climbed nearly 3% to $97.23. This increase follows a significant drop on Wednesday, when Brent tumbled 13.29% to a four-week low of $94.75 a barrel. Gas prices also saw a rise, with the UK gas contract up 1% at 115.35p per therm after a 15% drop the previous day. European natural gas futures increased towards €46 a megawatt hour after previously plummeting to a five-week low. The situation escalated as Israel continued attacks on Lebanon and the U.S. and Iran exchanged threats of military action. The Revolutionary Guards in Iran warned of a strong response if Israel did not cease its strikes. In the stock markets, Japan’s Nikkei fell 0.7%, South Korea’s Kospi lost 1.7%, and European stocks opened lower, reflecting fading optimism from a previous rally. Despite the fragile ceasefire, some analysts express cautious optimism that it may hold due to the principle of mutually assured destruction, suggesting both parties may prefer to avoid further conflict.