LONDON – Web Desk: Oil prices plummeted in global markets as positive effects emerged from the Israel-Lebanon ceasefire and prospects of a potential peace agreement with Iran, with Brent crude falling to $93.5 and West Texas Intermediate to $91 per barrel by the end of the day, according to international media reports.
Earlier in the day, Brent crude had fallen over 3% to near $94 per barrel, while WTI traded around $92 per barrel with a nearly 4% decline. The price drop came after US President Trump’s insistence on a peace agreement with Iran rather than war, combined with diplomatic progress between Israel and Lebanon, raising hopes for a broader peace deal between Iran and the US.
John Kilduff, partner at investment firm Again Capital, stated that the market is currently prioritizing potential political solutions, while concerns over oil supply disruptions have moved to the background. He added that recent progress between Israel and Lebanon has weakened the prospects of oil price increases, with investors now expecting stability in the region.
A major reason for the oil price decline is also attributed to reduced concerns over the Strait of Hormuz — the world’s most important energy waterway through which a large portion of globally seaborne crude oil passes. Recent diplomatic signals have strengthened market perception that shipping through the Strait will continue as normal, though the Middle East situation remains uncertain.
