Oil prices declined on Thursday after Israel and Lebanon agreed to implement a ceasefire, raising hopes for a broader agreement that could help end the U.S.-Israeli war with Iran. The decline also came as the U.S. House of Representatives passed a resolution aimed at limiting President Donald Trump’s authority regarding the conflict.
Brent crude futures fell by 67 cents, or 0.69%, to $97.14 per barrel by 00:15 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 62 cents, or 0.65%, to $95.40 per barrel.
Both benchmarks had risen by nearly 2% on Wednesday, extending gains from the previous session following renewed hostilities in the Middle East, including Iranian attacks on Kuwait and U.S. military strikes near the Strait of Hormuz.
In the United States, the Republican-controlled House of Representatives approved a resolution on Wednesday seeking to prevent President Donald Trump from continuing military operations against Iran. For the measure to take effect, it must still be approved by the Senate and secure a two-thirds majority in both chambers to override an expected presidential veto.
Trump indicated on Wednesday that progress in negotiations with Iran could be achieved by the beginning of next week.
Meanwhile, Iranian Foreign Minister Abbas Araghchi said that communication channels between Tehran and Washington remain open, although no significant progress has been made in the talks. He added that both sides are currently reviewing draft proposals that have been exchanged.
Separately, the U.S. Energy Information Administration reported on Wednesday that U.S. crude oil inventories fell by 8 million barrels to 433.7 million barrels during the week ending 29 May. Analysts surveyed by Reuters had expected a decline of about 4 million barrels, indicating stronger-than-anticipated demand or supply tightening.
The combination of easing geopolitical concerns and developments in diplomatic efforts has contributed to downward pressure on oil prices, although markets continue to monitor events in the Middle East closely.
Source: Reuters.
