Global crude oil prices have fallen as news of a new peace deal between Israel and Lebanon fuelled positivity among investors worldwide. Optimism over a wider diplomatic breakthrough to end the US-Israel war on Iran is also gaining traction in international circles despite recent fire exchanges.
Brent crude futures slipped 67 cents, or 0.69 per cent, to trade at $97.14 per barrel as of 00:15 GMT, while US West Texas Intermediate (WTI) crude futures declined by 62 cents, or 0.65 per cent, to $95.40 per barrel.
While the drop in prices is giving positive signals, traders remain cautious about the fate of the Strait of Hormuz, which has remained effectively blocked for the past three months. The US and Iran have reportedly agreed on a broad framework to extend their truce by two months and eventually reopen the critical waterway. However, negotiations over the final terms continue, as the situation between the two sides remains fragile.
Iran’s Foreign Minister Abbas Araghchi said no tangible progress had been achieved in the talks and warned that Tehran could target objectives inside Israel if attacks on Beirut continue.
US President Donald Trump has said the Strait of Hormuz could reopen “immediately” once Iran signs a memorandum of understanding to cease armed hostilities and remaining issues, including sea mines, are addressed.
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