Global crude oil prices dropped more than 1 percent on Thursday morning after Israel and Lebanon renewed a ceasefire agreement, sparking hopes for reduced tensions across West Asia. The fall followed a nearly 2 percent rise in prices during the prior session due to renewed regional clashes. The truce depends on Iran-backed Hezbollah halting its operations. At 8 am, the August Brent crude contract traded at $96.67 per barrel on the Intercontinental Exchange, down 1.17 percent. The July West Texas Intermediate contract on NYMEX declined 1.06 percent to $95.00 per barrel. Reports indicate the sides agreed to create pilot security zones in Lebanon barring Hezbollah militants. A joint statement from the US, Lebanon and Israel noted the ceasefire requires a full stop to Hezbollah activity south of the Litani River. US President Donald Trump indicated possible progress in Iran talks by the weekend. Iran’s foreign minister stated contacts with Washington continue without current advances. The Republican-led House passed a measure to limit further US action against Iran, though Senate approval and veto overrides would be needed. India’s crude basket eased to $96.12 per barrel on 2 June from a May average of $106.23.
