Oil prices fall as diplomatic progress reduces geopolitical risk premium in the Middle East.
West Texas Intermediate crude slid to near $93.00 in early European trading, extending losses after Israel and Lebanon agreed to renew a ceasefire. The benchmark traded at $93.10, down from previous levels as hopes for reduced regional tensions weighed on prices.
Prior to the announcement, WTI had hovered above $94.00 amid concerns over supply disruptions from Middle East conflicts. Analysts had expected volatility to persist until clarity emerged on the ceasefire’s duration and enforcement.
Markets reacted swiftly to the news, with crude futures paring gains built on geopolitical risk premiums.