Oil prices fell sharply on Monday, with Brent crude dropping by 2.45% to $73.34 per barrel and West Texas Intermediate crude decreasing by 2.81% to $69.24 per barrel.
This decline followed reports of progress in ceasefire talks between Israel and Hezbollah.
Unnamed senior U.S. officials reported that both Israel and Lebanon had agreed to the terms of a deal to end the conflict, raising hopes for reduced tensions in the region.
Israel confirmed it was working toward a ceasefire but noted unresolved issues. Lebanese officials expressed cautious optimism while warning against fully trusting Israeli Prime Minister Benjamin Netanyahu.
Lebanon’s Deputy Parliament Speaker Elias Bou Saab stated, “There are no serious obstacles left to start implementing a U.S.-proposed ceasefire with Israel unless Netanyahu changes his mind.”
The proposed agreement includes an Israeli military withdrawal from southern Lebanon, with Lebanese army troops taking over the border region within 60 days. A monitoring committee involving five countries, including France and chaired by the United States, was also agreed upon to oversee compliance.
Despite the progress, hostilities have intensified. Israeli airstrikes killed at least 29 people in central Beirut over the weekend, while Hezbollah fired 250 missiles in one of its largest rocket attacks.
The U.S. has played a central role in mediating the truce, with significant progress reported by U.S. mediator Amos Hochstein. “An agreement could happen within days. We just need to close the last corners,” said Michael Herzog, Israel’s ambassador to Washington.
Efforts to resolve the conflict align with a broader strategy to stabilize the region, although hostilities remain severe. Lebanon’s health ministry reported 3,768 deaths in the country, while Hezbollah strikes have killed 45 civilians and 73 soldiers in Israel and the Israeli-occupied Golan Heights, according to Israeli authorities.
The ceasefire talks focus on implementing United Nations Security Council Resolution 1701, which ended the 2006 Israel-Hezbollah war.
