London, United Kingdom – Web Desk: Global oil prices fell by more than 3% after the announcement of a ceasefire agreement between Israel and Lebanon, easing concerns over regional supply disruptions and boosting hopes for broader diplomatic progress involving Iran and the United States.
According to market reports, the ceasefire has increased expectations of a potential agreement between Tehran and Washington, raising the possibility of improved stability around the Strait of Hormuz, a key route for global energy shipments.
Brent crude futures dropped by $3.05, or 3.1%, to settle at $94.76 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude declined by $3.24, or 3.4%, to $92.78 per barrel.
The decline follows a sharp rise in oil prices a day earlier after heightened tensions involving Iranian strikes on Kuwait and U.S. military operations near the Strait of Hormuz. During the previous trading session, Brent crude climbed to $97.81 per barrel, while WTI reached $96.02 per barrel.
Market analyst John Evans said Iran had insisted on ending Israeli military operations in Lebanon, particularly attacks targeting Hezbollah positions, and recent developments suggest progress has been made on that front.
