Oil prices fell by about $3 on Thursday as investors bet on a possible easing of tensions in the Middle East following hopes of a wider ceasefire deal that could eventually lead to the reopening of the Strait of Hormuz.
According to Reuters, the decline came after Israel and Lebanon said they had agreed to implement a ceasefire, a development that raised expectations of possible diplomatic progress involving Washington and Tehran.
Iran has reportedly made any agreement conditional in part on an end to hostilities between Israel and Hezbollah, the Iran-aligned group in Lebanon.
Brent crude futures dropped by $3.20, or 3.27 per cent, to $94.61 per barrel on Thursday, while the US West Texas Intermediate crude fell $3.71, or 3.86 per cent, to $92.31 per barrel.
The benchmarks had risen about two per cent on Wednesday after renewed Middle East tensions, including reported Iranian attacks on Kuwait and US
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