Geopolitical escalation in Lebanon and delayed Hormuz shipping add supply risks, but WTI crude falls $4.77 to $80.11 amid mixed signals.
WTI crude oil dropped $4.77 to $80.11 as geopolitical tensions in Lebanon and the Strait of Hormuz sent mixed signals to markets. An Israeli drone strike in southern Lebanon killed a driver, raising concerns over regional stability and potential supply disruptions.
Earlier reports indicated U.S. military advisors warned ships against crossing the Strait of Hormuz until a deal is signed on June 19, which could tighten oil supplies. However, conflicting statements suggested some vessels were already moving through the area, easing immediate fears.
Demining operations in Hormuz are expected to begin post-agreement, but uncertainty persists. The market reaction reflects cautious trading amid competing narratives on supply risks and actual disruptions.