Oil Prices Slip on Lebanon Ceasefire, Hopes of Iran Talks

Crude oil prices came under renewed pressure in early Asian trading after a 10-day ceasefire between Israel and Lebanon took effect and U.S. President Donald Trump suggested that diplomatic talks with Iran could resume as early as this weekend.

At the time of reporting, West Texas Intermediate (WTI) was trading at $93.26 per barrel, down 1.51%, while Brent crude fell 1.03% to $98.37. Both benchmarks remain well below the recent triple-digit highs reached earlier in the week, when tensions in the Middle East escalated following a breakdown in negotiations.

Latest Oil Prices:

WTI Crude • 93.37 -1.32 -1.39%

Brent Crude • 98.12 -1.27 -1.28%

Murban Crude • 101.7 +0.81 +0.80%

WTI Midland • 98.49 +4.24 +4.50%

Opec Basket • 104.6 -5.33 -4.85%

Indian Basket • 110.5 -5.74 -4.94%

Natural Gas • 2.661 +0.014 +0.53%

Gasoline • 3.147 -0.017 -0.54%

Heating Oil • 3.805 -0.028 -0.74%

The ceasefire, which began at midnight local time, has been described as fragile, with reports of alleged violations and intermittent clashes. The Lebanese army accused Israel of carrying out multiple strikes despite the agreement, while Israeli forces have reportedly maintained a military presence in southern Lebanon during the truce, an issue strongly opposed by Hezbollah.

Analysts say the truce could serve as a potential opening for broader diplomatic engagement, including renewed U.S.–Iran negotiations. Trump has claimed that Iran has agreed in principle not to pursue nuclear weapons and to relinquish sensitive nuclear materials, although Iranian officials have not confirmed those statements. Iran’s UN envoy has, however, described the situation as “cautiously optimistic.”

Meanwhile, geopolitical uncertainty continues to dominate energy markets. Washington has maintained pressure on Tehran through expanded maritime restrictions in and around the Strait of Hormuz, a critical chokepoint for global oil shipments. Any disruption in the waterway remains a key risk factor for global supply stability.

Industry figures have warned against any arrangement that could introduce tolls or operational constraints on shipping through the Strait, arguing it would undermine the principle of open maritime access and further destabilize global energy flows.

Despite signs of easing geopolitical tension, analysts caution that oil markets remain highly sensitive to developments in both the Lebanon ceasefire and potential Iran negotiations. Even under a diplomatic scenario, they note, structural supply risks could persist if key export routes remain vulnerable or contested.