Brent and WTI fall nearly 1% on hopes of reduced Middle East tensions and smoother oil flows.
Image: epardafas.com
Global oil prices edged lower on Thursday after Israel and Lebanon agreed to a ceasefire, easing concerns about wider conflict in the Middle East. The development raised hopes of a broader diplomatic breakthrough that could also reduce risks to key oil shipping routes.
Brent crude fell 87 cents, or 0.89%, to $96.92 a barrel, while US West Texas Intermediate (WTI) dropped 78 cents, or 0.81%, to $95.24. Both benchmarks had gained about 2% in the previous session due to renewed regional tensions and attacks in the Gulf area.
The ceasefire has improved expectations of reduced disruption near the Strait of Hormuz, a critical passage for global oil supplies. Markets are also watching ongoing US–Iran talks, with some officials suggesting progress could be possible in the coming days.
Despite the dip, analysts warn that oil markets remain tight. US crude inventories fell sharply by 8 million barrels last week, far more than expected, while supply risks and geopolitical uncertainty continue to support underlying price volatility.
