Oil falls $2 on possible ME peace deal

Oil prices drop over $2 as reports suggest a potential ceasefire deal between Israel and Lebanon.

HOUSTON:

Oil prices fell more than $2 on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict, citing unnamed senior US officials.

Brent crude futures were down 2.45%, or $1.84, at $73.34 a barrel by 1717 GMT, while US West Texas Intermediate crude futures were down $2.00, or 2.81%, at $69.24 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.