Oil fell by roughly 3% as reports signal progress in Middle East truce talks
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.
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.