Ceasefire agreement eases Middle East supply disruption fears, pushing oil prices higher in immediate trading.
Israel and Lebanon agreed to renew a ceasefire after US-mediated talks, requiring Hezbollah to halt attacks. The deal includes pilot security zones controlled exclusively by Lebanese armed forces, reducing regional tensions.
Prior to the announcement, WTI crude traded near $91.50, reflecting concerns over escalating conflict disrupting supply. Comparable geopolitical risks, such as the Russia-Ukraine war, previously drove prices above $100.
WTI crude rose 1.70% to $93.25 following the news, as traders priced in reduced supply risks from the Middle East.