Investing
Oil falls $1 on Israel-Lebanon ceasefire report
Published by Jessica Weisman-Pitts
Posted on November 25, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on November 25, 2024
2 min readLast updated: January 28, 2026
By Arunima Kumar and Enes Tunagur
HOUSTON (Reuters) – Oil prices fell more $1 on Monday after Axios reported that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict, citing an unnamed senior U.S. official.
Brent crude futures were down $1.34, or 1.78%, at $73.83 a barrel by 9 a.m. CST (1500 GMT), while U.S. West Texas Intermediate crude futures were down $1.44, or 2.02%, at $69.80 a barrel.
Israel said on Monday that it is moving toward a ceasefire in the war with Hezbollah but there are still issues to address, while Lebanese officials voiced guarded optimism but said Israeli Prime Minister Benjamin Netanyahu was not to be trusted.
It seems the news of a ceasefire between Israel and Lebanon is behind the price drop, though no supply has been disrupted due to the conflict between the two countries and the risk premium in oil has been low already before the latest price decline,” said Giovanni Staunovo of UBS.
Geopolitical risk of supply disruptions from either Iran or Russia drove up crude oil prices last week.
Both Brent and US WTI contracts last week notched their biggest weekly gains since late September to reach their highest settlement levels since Nov. 7 after Russia fired a hypersonic missile at Ukraine in a warning to the United States and the UK following strikes by Kyiv on Russia using U.S. and British weapons.
(Reporting by Erwin Seba in Houston, Enes Tunagur in London, Arunima Kumar in Bengaluru, Gabrielle Ng and Florence Tan; editing by Saad Sayeed, Jason Neely, Susan Fenton and Jonathan Oatis)
Brent crude oil is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally and is used to price two-thirds of the world's crude oil.
West Texas Intermediate (WTI) is a light, sweet crude oil originating from the United States. It is one of the main benchmarks for oil prices and is traded on the New York Mercantile Exchange.
A risk premium is the return in excess of the risk-free rate of return that investors require to compensate them for the risk of an investment. It reflects the uncertainty and potential for loss.
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