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Oil Prices Slump as Iran and the United States Agree to a Truce, Reopening the Strait of Hormuz

Oil traded sharply lower early Monday after the United States and Iran reached a truce in the war that has blocked off the Strait of Hormuz, the chokepoint for a fifth of the daily oil demand supplied by Persian Gulf nations.West Texas Intermediate crude oil for July delivery was last seen down US$4.36 to US$80.52 per barrel, the lowest since March 4, while August Brent oil down US$4.07 to US$83.26.In a deal brokered by Pakistan, the United States and Iran on Sunday reached a memorandum of understanding to end the war launched by the U.S. and Israel on Feb. 28. According to the Wall Street Journal, the deal will see the Strait reopened on Friday, releasing tankers trapped in the Gulf and freeing up oil exports from the region. A final deal is expected to take up to two months to reach.The war has forced importing countries to draw down stockpiles, depleting global inventories that had been swelled by over-production prior to the start of the war. Iranian attacks on its regional neighbors damaged crucial oil infrastructure and shut in producing producing oil fields, which will take at least months to restore pre-war output, likely keeping prices elevated for months."Whether prices, currently around US$13 above pre-war levels, can fall further will depend on several factors, including the pace at which commercial and strategic stockpiles are replenished, how quickly shut-in production can be brought back online, and the extent of any lasting demand destruction caused by a prolonged period of elevated energy prices. The speed at which supply chains normalise and export flows recover will also play a key role in determining how much of the geopolitical risk premium remains embedded in the market," Saxo Bank noted.

Update: WTI Oil Falls to a Two-Month Low on Reports a U.S. Peace Deal With Iran is Near

West Texas Intermediate (WTI) crude oil fell for a second day on Friday, falling to the lowest in nearly two months on expectations the United States and Iran are near a deal to end their war and reopen the Strait of Hormuz.WTI crude oil for July delivery closed down US$2.893 to settle at US$84.88 per barrel, the lowest since April 17, while August Brent oil was last seen down US$3.11 to US$87.27.The drop comes as U.S. President Trump on Thursday said he canceled planned attacks on Iran and said a peace deal with the country is near. Reports said a deal could be signed this weekend, however the Wall Street Journal said Iran has not yet agreed to the peace proposal, though Qatar's leader, Sheikh Tamim bin Hamad al-Thani, which is mediating talks, confirmed progress is being made on a agreement.A deal could see the Strait of Hormuz reopen freeing up trapped supplies from the Persian Gulf nations that supplied about 20% of daily oil demand before the Strait was closed to shipping at the Feb. 28 start of the war. Traders are expecting a peace deal to offer a quick boost to supply as tankers trapped within the Gulf since the Strait was closed move to market, easing worries over depleted inventories and ending the largest ever supply shock."Oil slumped after President Trump talked up another peace deal, with markets this time appearing increasingly willing to believe it may be for real, despite the lack of confirmation from Tehran. Brent crude fell to a two-month low amid expectations of a surge in supply from tankers currently stranded in the Gulf," Saxo Bank wrote.Still, a recovery of normal supply from the Persian Gulf is expected to be slow, as damage to infrastructure from the war is repaired and countries in the region restart shut-in oil fields, continuing the draw down on global inventories that began with the start of the conflict."Once the traffic through the Strait of Hormuz gradually begins to resume and shut-in oil production increasingly restarts, we assume (Brent) oil prices will begin to fall, decreasing to an average of $89/b by 4Q26. We assess that most shut-in oil production will be fully restored in 1Q27 and that global oil inventories will again start building, gradually lowering oil prices to an average of $79/b in 2027," the U.S. Energy Information Administration said in its monthly Short-Term Oil Energy Outlook released this week.

Oil Falls to a Two-Month Low on Reports a U.S. Peace Deal With Iran is Near

Oil prices fell for a second day early on Friday, falling to the lowest in nearly two months on expectations the United States and Iran are near a deal to end their war and reopen the Strait of Hormuz.West Texas Intermediate crude oil for July delivery was last seen down US$3.07 to US$84.64, the lowest since April 17, while August Brent oil was down US$2.95 to US$87.43.The drop comes as U.S. President Trump on Thursday said he canceled planned attacks on Iran and said a peace deal with the country is near. Reports said a deal could be signed this weekend, however the Wall Street Journal said Iran has not yet agreed to the peace proposal, though Qatar's leader, Sheikh Tamim bin Hamad al-Thani, which is mediating talks, confirmed progress is being made on a agreement.A deal could see the Strait of Hormuz reopen freeing up trapped supplies from the Persian Gulf nations that supplied about 20% of daily oil demand before the Strait was closed to shipping at the Feb. 28 start of the war. Traders are expecting a peace deal to offer a quick boost to supply as tankers trapped within the Gulf since the Strait was closed move to market, easing worries over depleted inventories and ending the largest ever supply shock."Oil slumped after President Trump talked up another peace deal, with markets this time appearing increasingly willing to believe it may be for real, despite the lack of confirmation from Tehran. Brent crude fell to a two-month low amid expectations of a surge in supply from tankers currently stranded in the Gulf," Saxo Bank wrote.Still, a recovery of normal supply from the Persian Gulf is expected to be slow, as damage to infrastructure from the war is repaired and countries in the region restart shut-in oil fields, continuing the draw down on global inventories began with the start of the conflict."Once the traffic through the Strait of Hormuz gradually begins to resume and shut-in oil production increasingly restarts, we assume (Brent) oil prices will begin to fall, decreasing to an average of $89/b by 4Q26. We assess that most shut-in oil production will be fully restored in 1Q27 and that global oil inventories will again start building, gradually lowering oil prices to an average of $79/b in 2027," the U.S. Energy Information Administration said in its monthly Short-Term Oil Energy Outlook released this week.

Update: WTI Closes Lower as Trump Cancels Iran Attacks, Says Peace Talks to Resume

West Texas Intermediate (WTI) crude oil closed lower on Thursday, falling off session highs after U.S. President Trump canceled planned attacks on Iran and said talks may be resuming.WTI oil for July delivery closed down US$2.32 to settle at US$87.71 per barrel, falling off a session high of US$93.64, while July Brent oil was last seen down US$2.86 to US$90.24.In a social media post, Trump said he is canceling the attacks planned for Iran today, saying "Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening".Trump added "Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others .However Iranian media reported Iran has not yet approved any text for the agreement.Trump has frequently promised a quick end the war that has shut in the Strait of Hormuz, blocking much of the one-fifth of daily oil demand supplied by Persian Gulf nations. Any deal to end the conflict would restore much of that supply, but not immediately as infrastructure is repaired and oilfields restarted.The lack of supply is cutting into oil inventories, with the Energy Information Administration on Wednesday reporting U.S. commercial oil inventories fell by 7.2-milllion barrels last week, well above the consensus estimate for a 4.0-million barrel drop among analysts polled by Reuters.

July WTI Crude Oil Contract Closes Down US$2.32; Settles at US$87.71 per Barrel

Oil Trading Higher as Fresh Fighting in the War on Iran Threatens to Prolong the Energy Supply Shock

Oil prices rose early on Thursday as the United States launched a new round of attacks on Iran, ending a ceasefire between the two and keeping the Strait of Hormuz blocked for most shipping.West Texas Intermediate crude oil for July delivery was last seen up US$0.75 to US$90.78 per barrel, while July Brent oil was up US$0.41 to US$93.51.U.S. President Trump on Wednesday ordered fresh strikes on Iranian targets amid frustration Iran is stalling negotiations to end the war that has produced the largest ever energy supply shock. Iran responded by launching attacks on Kuwait, Jordan and Bahrain. Iran also said it will completely close the Strait of Hormuz, keeping oil exports from the Persian Gulf nations that supplied a fifth of daily oil demand mostly off the market.The Wall Street Journal reported the fighting came as Trump said Iran is "playing us for suckers" as he looks to force the country to resume negotiations over its nuclear stockpiles. U.S. forces had been accompanying tankers through the Strait, with Bloomberg reporting ships carrying more than 100-million barrels of oil have passed through the waterway since it began protecting shipping in the region, though renewed fighting may heighten the risk to shipping."US forces struck targets in Iran for a second consecutive day. Renewed hostilities threaten to prolong the near-total closure of the Strait of Hormuz, which has severely disrupted flows of crude oil, refined fuels, and natural gas since the conflict escalated in late February," Saxo Bank noted.The lack of supply is cutting into oil inventories, with the Energy Information Administration on Wednesday reporting U.S. commercial oil inventories fell by 7.2-milllion barrels last week, well above the consensus estimate for a 4.0-million barrel drop among analysts polled by Reuters.

Update: WTI Oil Rises as Iran and the U.S. Trade Attacks While U.S. Oil Inventories Fall Again

West Texas Intermediate (WTI) crude oil rose on Wednesday on renewed fighting between the United States and Iran, while a report showed U.S. oil inventories fell for an eighth week.WTi oil for July delivery closed up US$1.83 to settle at US$90.03 per barrel, while August Brent oil was last seen up US$2.23 to US$93.78.The rise comes on a fresh clash between the United States and Iran. Iran on Tuesday shot down a U.S. helicopter and the U.S. responded with attacks on Iranian targets. According to the Wall Street Journal, Iran also attacked U.S. allies in the Persian Gulf region, as well as Jordan.The fighting is lowering hopes for a peace deal between Iran and the United States, leaving the Strait of Hormuz closed to shipping and keeping most oil exports from Persian Gulf nations, which supplied a fifth of daily oil demand, off the market.In its monthly Short-Term Energy Outlook released on Tuesday, the Energy Information Administration (EIA) reported the closure of the Strait is depleting global inventories, keeping prices high."Global oil markets remain highly volatile as very limited shipping traffic through the Strait of Hormuz has caused oil producers in the Middle East to reduce crude oil production by more than 11 million barrels per day (b/d) in May compared with pre-conflict levels. This drop in production has resulted in large global inventory draws to meet demand. Under our assumptions, we expect global oil inventories will fall by an average of 6.3 million b/d in 2Q26 and by 7.6 million b/d in 3Q26," the agency said.In its weekly survey, the EIA reported U.S. commercial oil inventories fell by 7.2-milllion barrels last week, well above the consensus estimate for a 4.0-million barrel drop among analysts polled by Reuters.

July WTI Crude Oil Contract Closes Up US$1.83; Settles at US$90.03 per Barrel

Oil Prices Rise as Iran and the U.S. Trade Attacks While U.S. Oil Inventories Fall Again

Oil prices rose early on Wednesday on renewed fighting between the United States and Iran, while a report showed U.S. oil inventories fell for an eighth week.West Texas Intermediate crude oil for July delivery was last seen up US$1.68 to US$89.88 per barrel, while August Brent oil was up US$1.52 to US$92.97.The rise comes on a fresh clash between the United States and Iran. Iran on Tuesday shot down a U.S. helicopter and the U.S. responded with attacks on Iranian targets. According to the Wall Street Journal, Iran also attacked U.S. allies in the Persian Gulf region, as well as Jordan.The fighting is lowering hopes for a peace deal between Iran and the United States, leaving the Strait of Hormuz closed to shipping and keeping most oil exports from Persian Gulf nations, which supplied a fifth of daily oil demand, off the market.In its monthly Short-Term Energy Outlook released on Tuesday, the Energy Information Administration (EIA) reported the closure of the Strait is depleting global inventories, keeping prices high."Global oil markets remain highly volatile as very limited shipping traffic through the Strait of Hormuz has caused oil producers in the Middle East to reduce crude oil production by more than 11 million barrels per day (b/d) in May compared with pre-conflict levels. This drop in production has resulted in large global inventory draws to meet demand. Under our assumptions, we expect global oil inventories will fall by an average of 6.3 million b/d in 2Q26 and by 7.6 million b/d in 3Q26," the agency said.In its weekly survey, the American Petroleum Institute reported U.S. oil inventories fell by 9.12-million barrels last week, well above consensus expectation for a drop of 3.4-million barrels and the eighth-straight weekly drop. The EIA will release official storage data later on Wednesday morning.

Update: WTI Oil Falls on Calming Middle East Tensions

West Texas Intermediate (WTI) crude oil fell 3.4% on Tuesday on calming tensions in the Middle East as Iran and Israel ended their missile attacks and U.S. President Trump said negotiations to end the war on Iran and reopen the Strait of Hormuz are in their "final throes".WTI crude oil for July delivery closed down US$3.10 to settle at US$88.20 per barrel, while August Brent oil was last seen down US$2.82 to US$91.43.Iran on the weekend launched missile strikes on Israel to force an end to Israel's occupation of southern Lebanon and Israel responded with strikes on Iran. The pair on Monday agreed to end hostilities, though Israel continues its war on the Iran-backed Hezbollah militant group, on Tuesday warning ordering residents of the city of Tyre to evacuate ahead of planned attacks on the city.The tenuous ceasefire between U.S. forces and Iran remains in place, with little word on the state of negotiations between the two, with Iran saying it will refuse talks until Israel withdraws from Lebanon. However the New York Times reported Trump told Israel Prime Minister Benjamin Netanyahu the U.S. is near a long-term deal to check Iran's nuclear program."Oil gave back most of Monday's gains after Israel and Iran halted hostilities that had threatened to derail already fragile efforts to secure a broader peace agreement in the Middle East. US President Donald Trump, meanwhile, maintained his typically optimistic tone, saying negotiations are in the "final throes" of what he expects will be a successful deal," Saxo Bank wrote.The war is now in its fourth month, keeping the Strait of Hormuz blocked, shutting in much of the 20% of daily oil demand supplied by Persian Gulf nations. The largest-ever energy supply shock has kept oil prices high, with little expectations they will fall in the near term even if the Strait reopens, with Gulf producers needing to repair infrastructure damaged in the war and restart shut-in oilfields."With the Strait of Hormuz remaining effectively closed in the near term, disruptions to global oil production and shipments continue. Middle Eastern oil producers have cut output by over 11 million barrels per day (b/d), leading to large global inventory draws that average 6.3 million b/d in 2Q26 and 7.6 million b/d in 3Q26. As a result, oil inventories in OECD countries are the lowest since 2003. Global oil demand in 2026 falls by 1.1 million b/d compared with last year but is expected to increase by 2.5 million b/d in 2027, as oil prices decline and oil production in the Middle East gradually rises," the Energy Information Administration said in its monthly Short-Term Energy Outlook

July WTI Crude Oil Contract Closes Down US$3.10; Settles at US$88.20 per Barrel

Oil Trading Lower on Calming Middle East Tensions

Oil prices fell early on Tuesday on calming tensions in the Middle East as Iran and Israel ended their missile attacks and U.S. President Trump said negotiations to end the war on Iran and reopen the Strait of Hormuz are in their "final throes".West Texas Intermediate crude oil for July delivery were last seen down US$1.73 to US$89.57 per barrel, while August Brent oil was down US$1.46 to US$92.70.Iran on the weekend launched missile strikes on Israel to force an end to Israel's occupation of southern Lebanon and Israel responded with strikes on Iran. The pair on Monday agreed to end hostilities, though Israel continues its war on the Iran-backed Hezbollah militant group, on Tuesday warning ordering residents of the city of Tyre to evacuate ahead of planned attacks on the city.The tenuous ceasefire between U.S. forces and Iran remains in place, with little word on the state of negotiations between the two, with Iran saying it will refuse talks until Israel withdraws from Lebanon. However the New York Times reported Trump told Israel Prime Minister Benjamin Netanyahu the U.S. is near a long-term deal to check Iran's nuclear program."Oil gave back most of Monday's gains after Israel and Iran halted hostilities that had threatened to derail already fragile efforts to secure a broader peace agreement in the Middle East. US President Donald Trump, meanwhile, maintained his typically optimistic tone, saying negotiations are in the "final throes" of what he expects will be a successful deal," Saxo Bank wrote.The war is now in its fourth month, keeping the Strait of Hormuz blocked, shutting in much of the 20% of daily oil demand supplied by Persian Gulf nations. The largest-ever energy supply shock has kept oil prices high, with little expectations they will fall in the near term even if the Strait reopens, with Gulf producers needing to repair infrastructure damaged in the war and restart shut-in oilfields."Hormuz remains closed, and if suddenly opened tomorrow, will take up to a year to revert to normalcy," PVM Oil Associates noted.

Update: WTI Oil Rises as Iran and Israel Traded Strikes But Fell Back From Highs as They Agreed to Stop

West Texas Intermediate (WTI) oil rose on Monday as Iran launched weekend missile strikes on Israel on the weekend while Israel responded with strikes of its own but fell off session highs after they agreed to halt further attacks.WTI crude oil for July delivery closed up US$0.76 to settle at US$91.30 per barrel, after earlier touching US$95.47. August Brent oil was lost seen up US$1.13 to US$94.22.The rise comes as Iran on the weekend launched strikes on Israel to deter Israel's occupation of southern Lebanon and end its attacks on Beirut in its war on the Iran-backed Hezbollah militant group. However Reuters reported the two agreed to halt their strikes, paring gains.The renewed hostilities threatened to again test the two-month ceasefire between Iran and the United States, while talks between the two countries are stalled due to Iran's insistence Israel first must end its war in Lebanon. The fighting is lowering hopes for a peace deal that would reopen the Strait of Hormuz, freeing up the oil exports from Persian Gulf nations that supplied 20% of daily oil demand and ending the largest-ever supply shock."Oil has once again moved towards the upper end of its established trading range after Israel and Iran resumed exchanging fire. Despite repeated optimism from the US administration, a lasting peace agreement appears increasingly elusive. The near closure of the Strait of Hormuz continues to tighten global energy markets, with several oil majors warning that the window before physical shortages begin to emerge may be measured in weeks rather than months," Saxo Bank noted.OPEC+ on the weekend agreed to raise July export quotas by 188,000 barrels per day, but the measure is having little market effect since with much of its members' supply capacity remaining trapped within the Persian Gulf. Russia's quota has been raised to 9.82 million barrels per day, according to Rystad Energy, but the country's shipment are at only 9.2-million bpd due to Ukrainian attacks on the country's oil infrastructure"With the Strait of Hormuz closed, the issue is not whether OPEC+ raises paper quotas, but whether additional barrels can actually reach the market. OPEC+'s decision to continue increasing production by 188,000 barrels per day for June confirms that the group remains on track to unwind the first tranche of voluntary cuts by September, if not earlier. But in the current market, the physical impact of such a decision would be close to zero," Rystad noted.

Oil Prices Rise as Iran and Israel Trade Strikes, Lowering Hopes for a End to the Middle East War

Oil prices rise early on Monday as Iran launched missile strikes on Israel on the weekend while Israel responded with strikes of its own despite U.S. pressure to refrain from retaliating.West Texas Intermediate crude oil for July delivery was last seen up US$0.85 at US$91.30 per barrel, while August Brent oil was up US$1.18 at US$94.27.The rise comes as Iran on the weekend launched strikes on Israel to deter Israel's occupation of southern Lebanon and end its attacks on Beirut in its war on the Iran-backed Hezbollah militant group. Citing Iranian state media, the Wall Street Journal reported Iran is ending further strikes, the first between the two countries since April. Israel ignored pressure from U.S President Trump to not respond and preserve a fragile ceasefire in the Middle East war.The renewed hostilities are testing the two-month ceasefire between Iran and the United States, while talks between the two countries are stalled due to Iran's insistence Israel first must end its war in Lebanon. The fighting is lowering hopes for a peace deal that would reopen the Strait of Hormuz, freeing up the oil exports from Persian Gulf nations that supplied 20% of daily oil demand and ending the largest-ever supply shock."Oil has once again moved towards the upper end of its established trading range after Israel and Iran resumed exchanging fire. Despite repeated optimism from the US administration, a lasting peace agreement appears increasingly elusive. The near closure of the Strait of Hormuz continues to tighten global energy markets, with several oil majors warning that the window before physical shortages begin to emerge may be measured in weeks rather than months," Saxo Bank noted.OPEC+ on the weekend agreed to raise July export quotas by 188,000 barrels per day, but the measure is having little market effect since with much of its members' supply capacity remains trapped within the Persian Gulf. Russia's quota has been raised to 9.82 million barrels per day, according to Rystad Energy, but the country's shipment are at only 9.2-million bpd due to Ukrainian attacks on the country's oil infrastructure"With the Strait of Hormuz closed, the issue is not whether OPEC+ raises paper quotas, but whether additional barrels can actually reach the market. OPEC+'s decision to continue increasing production by 188,000 barrels per day for June confirms that the group remains on track to unwind the first tranche of voluntary cuts by September, if not earlier. But in the current market, the physical impact of such a decision would be close to zero," Rystad noted.

Update: WTI Oil Falls Even as Israel Continues Striking Lebanon Despite Ceasefire Deal

West Texas Intermediate (WTI) crude oil closed down 2.7% on Friday with little change in the outlook for a settlement to the U.S. war on Iran as Israel continued strikes at Lebanon despite reaching a ceasefire with the country a day earlier.WTI crude oil for July delivery closed down US$2.50 to settle at US$90.54 per barrel, while August Brent oil was last seen down US$1.99 to US$93.04.Oil fell more than 3% on Thursday after reports Israel and Lebanon agreed to a U.S.-brokered ceasefire, one of Iran's key demands for agreeing for a deal of its own to end the war with the United States and reopen the Strait of Hormuz. The key Strait has been closed since the United States and Israel launched strikes on Iran on Feb. 28, blocking the 20% of daily oil demand supplied by Persian Gulf nations.Peace talks between the United States and Iran that could open the waterway have been stalled and a ceasefire was tested earlier this week as the two sides traded strikes. The Israel-Lebanon agreement was seen as a potential avenue to reopening negotiations, however Al Jazeera on Friday reported Israel is continuing attacks in Lebanon, raising doubts the deal will hold, while Iran on Friday fired warning strikes at U.S. warships.The lack of Persian Gulf supply has left the Asian nations struggling to replace the lost barrels, while U.S. exports have surged, cutting into its inventories."Crude oil trades softer but remains near the upper end of Brent's recent USD 90-100 range after the Israel-Lebanon ceasefire announcement. The move follows another day of US and Iranian military action across the region. While flows through the Strait of Hormuz remain severely disrupted, global supply buffers continue to shrink. In the US, a sixth consecutive weekly inventory draw saw stockpiles at Cushing, the delivery hub for WTI futures, fall to 22.4 million barrels, edging closer to levels widely considered near the operational minimum," Saxo Bank said in a Thursday note.

July WTI Crude Oil Contract Closes Down US$2.50; Settle at US$90.54 per Barrel

Oil Edges Lower Even as Israel Continues Striking Lebanon Despite Ceasefire Deal

Oil prices edged lower early on Friday with little change in the outlook for a settlement to the U.S. war on Iran as Israel continued strikes at Lebanon despite reaching a ceasefire with the country a day earlier.West Texas Intermediate crude oil for July delivery was last seen down US$0.33 to US$92.71 per barrel, while August Brent oil was down US$0.44 to US$94.59.Oil fell more than 3% on Thursday after reports Israel and Lebanon agreed to a U.S.-brokered ceasefire, one of Iran's key demands for agreeing for a deal of its own to end the war with the United States and reopen the Strait of Hormuz. The key Strait has been closed since the United States and Israel launched strikes on Iran on Feb. 28, blocking the 20% of daily oil demand supplied by Persian Gulf nations.Peace talks between the United States and Iran that could open the waterway have been stalled and a ceasefire was tested earlier this week as the two sides traded strikes. The Israel-Lebanon agreement was seen as a potential avenue to reopening negotiations, however Al Jazeera on Friday reported Israel is continuing attacks in Lebanon, raising doubts the deal will hold, while Iran on Friday fired warning strikes at U.S. warships.The lack of Persian Gulf supply has left the Asian nations struggling to replace the lost barrels, while U.S. exports have surged, cutting into its inventories."Crude oil trades softer but remains near the upper end of Brent's recent USD 90-100 range after the Israel-Lebanon ceasefire announcement. The move follows another day of US and Iranian military action across the region. While flows through the Strait of Hormuz remain severely disrupted, global supply buffers continue to shrink. In the US, a sixth consecutive weekly inventory draw saw stockpiles at Cushing, the delivery hub for WTI futures, fall to 22.4 million barrels, edging closer to levels widely considered near the operational minimum," Saxo Bank said in a Thursday note.

Update: WTI Falls as Israel and Lebanon Reach a Ceasefire Deal, Easing the Way to a Potential U.S.-Iran Truce

West Texas Intermediate (WTI) crude oil closed down 3.1% on Thursday as Israel and Lebanon agreed to a ceasefire, one of Iran's key demands for agreeing for a deal of its own to end the war with the United States and reopen the Strait of Hormuz.WTI crude oil for July delivery was last seen down US$2.98 to settle at US$93.04 per barrel, while August Brent oil was last seen down US$3.53 to US$94.28.Reuters reported Israel and Lebanon's truce agreement is contingent on the evacuation of Iran-backed Hezbollah militants leaving southern Lebanon and ending its fight against Israel, which has taken control of the country's south.The deal may raise the odds of the United States and Iran will come to an agreement to end their war, which is now in its fourth month and flared up again this week. Iran blocked the Strait of Hormuz at the start of the war, choking off most oil exports from the Persian Gulf nations that supplied a fifth of daily demand.The lack of Persian Gulf supply has left the Asian nations struggling to replace the lost barrels, while U.S. exports have surged, cutting into its inventories."Crude oil trades softer but remains near the upper end of Brent's recent USD 90-100 range after the Israel-Lebanon ceasefire announcement. The move follows another day of US and Iranian military action across the region. While flows through the Strait of Hormuz remain severely disrupted, global supply buffers continue to shrink. In the US, a sixth consecutive weekly inventory draw saw stockpiles at Cushing, the delivery hub for WTI futures, fall to 22.4 million barrels, edging closer to levels widely considered near the operational minimum," Saxo Bank noted.

July WTI Crude Oil Contract Closes Down US$2.98; Settles at US$93.04 per Barrel

Oil Prices Fall as Israel and Lebanon Reach a Ceasefire Deal, Easing the Way to a Potential U.S.-Iran Truce

Oil prices retreated early on Thursday as Israel and Lebanon agreed to a ceasefire, one of Iran's key demands for agreeing for a deal of its own to end the war with the United States and reopen the Strait of Hormuz.West Texas Intermediate crude oil for July delivery was last seen down US$2.98 to US$93.04 per barrel, while August Brent oil was down US$2.97 to US$94.84.Reuters reported Israel and Lebanon's truce agreement is contingent on the evacuation of Iran-backed Hezbollah militants leaving southern Lebanon and ending its fight against Israel, which has taken control of the country's south.The deal may raise the odds of the United States and Iran will come to an agreement to end their war, which is now in its fourth month and flared up again this week. Iran blocked the Strait of Hormuz at the start of the war, choking off most oil exports from the Persian Gulf nations that supplied a fifth of daily demand.The lack of Persian Gulf supply has left the Asian nations struggling to replace the lost barrels, while U.S. exports have surged, cutting into its inventories."Crude oil trades softer but remains near the upper end of Brent's recent USD 90-100 range after the Israel-Lebanon ceasefire announcement. The move follows another day of US and Iranian military action across the region. While flows through the Strait of Hormuz remain severely disrupted, global supply buffers continue to shrink. In the US, a sixth consecutive weekly inventory draw saw stockpiles at Cushing, the delivery hub for WTI futures, fall to 22.4 million barrels, edging closer to levels widely considered near the operational minimum," Saxo Bank noted.