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Global crude oil prices dropped sharply on Monday, 25 November 2024, following reports that Israel and Lebanon had agreed to terms for a potential deal to end the conflict between Israel and Hezbollah. The news suggested a possible easing of geopolitical tensions in the Middle East.

Brent futures settled at $73.01/barrel, down $2.16, or 2.87%. 

WTI futures fell $2.30, or 3.23%, to close at $68.94/barrel.

Israel indicated that a truce with Hezbollah could be finalized within days, potentially reducing risks to crude supply and maritime transport in the region. However, uncertainties persisted.

The oil market has been trading within a narrow range since mid-October, as traders balance competing factors. Geopolitical risks, especially supply uncertainties linked to Russia and Iran, have lent support to prices. Conversely, expectations of a global supply surplus in 2025 have exerted downward pressure, keeping gains in check.