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04.06.202612:12:34UTC+00Oil Prices Fall 3% on Israel-Lebanon Deal

WTI crude futures extended losses on Thursday, falling more than 3% to $92 per barrel and breaking a three-day rally, as hopes grew for a possible agreement with Iran to end the conflict. The US announced that Israel and Lebanon had agreed to a ceasefire, conditional on Hezbollah also halting its attacks. Tehran has insisted that a ceasefire in Lebanon is a prerequisite for any peace deal with Washington. Lebanese President Aoun stated that the ceasefire would take effect within 24 hours of approval by all relevant parties.

Additionally, President Trump said on Wednesday that progress in negotiations with Iran could come as soon as this weekend. Nonetheless, uncertainty over the timing and outcome of the war’s end persists, and regional tensions remain high. Iran said there had been no recent progress in talks with the US, while Israel’s Defence Minister declared that Israel would continue its strikes on Lebanon. In parallel, the US and Iran have exchanged strikes in recent days, and the conflict has spilled over into Bahrain and Kuwait.

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