Oil prices fell on Thursday as a ceasefire deal between Israel and Lebanon boosted hopes for a broader agreement to end the United States-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz.
Brent futures were down 87 cents, or 0.89%, at $96.92 a barrel by 0458 GMT, while U.S. West Texas Intermediate crude fell 78 cents, or 0.81%, to $95.24, paring gains from earlier in the week.
Both Brent and WTI rose about 2% on Wednesday after renewed Middle East hostilities including Iranian attacks on Kuwait and U.S. military strikes near the Strait of Hormuz.
Israel and Lebanon said late on Wednesday they had agreed to implement a ceasefire, raising hopes for a deal between the United States and Iran, which has conditioned any agreement in part on an end to fighting between Israel and Lebanon.
Stock market investors lose N2.2trn as profit-taking persists
U.S. President Donald Trump suggested on Wednesday that there could be progress in negotiations with Iran as soon as this weekend.
Iranian Foreign Minister Abbas Araqchi on Wednesday said Tehran’s contacts with Washington have not been cut off, but no progress has been made in the negotiations, adding both sides were studying the texts that were exchanged.
In the U.S., the Republican-led House approved a resolution on Wednesday to block Trump from continuing the war against Iran, Reuters reported.
To take effect, the resolution would need Senate approval and two-thirds majorities in both chambers to override an almost certain Trump veto.
