Brent crude fell by 0.61% to $98.78 a barrel, while US West Texas Intermediate dropped 0.94% to $93.8, according to Reuters.
The decline followed reports that a 10-day ceasefire between Israel and Lebanon had taken effect, alongside comments by US President Donald Trump that Washington and Tehran could hold talks as early as this weekend.
“We’re very close to making a deal with Iran,” Trump told reporters on Thursday.
The conflict has disrupted global oil markets, particularly after the Strait of Hormuz – a key shipping route – was closed for weeks, affecting a significant share of global supply.
Ceasefire uncertainty remains
Trump said a 10-day ceasefire would begin at 5 p.m. Eastern Time on Thursday following talks with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu, though neither Israel nor Lebanon has confirmed the specific terms.
Despite Trump’s announcement, uncertainty persists over the ceasefire and broader negotiations.
According to Politico, Trump has pushed for a temporary ceasefire between Israel and Lebanon as part of efforts to advance talks with Iran, even as negotiations remain far from a comprehensive deal.
