Oil prices dropped by over 1% following reports of a surprise ceasefire agreement between Israel and Hezbollah. The decline began on June 19 as geopolitical risks eased, despite ongoing tensions on the ground. The potential agreement faced an early test on June 23 after Israeli fire killed two people in Lebanon.
Analysts warn the Israel-Lebanon deal, despite terms to end hostilities, may lock in a ‘no war, no peace’ stalemate, prolonging regional uncertainty.
Read the full storyA border shooting resulting in two fatalities in Lebanon serves as a critical early test for the stability of the recently brokered ceasefire.
Crude prices reversed gains following reports of a surprise agreement between Israel and Hezbollah, stripping away the geopolitical risk premium from the market.