Oil Prices Fall as Israel and Lebanon Agree to Ceasefire

Global oil prices declined between June 3 and June 5, 2026, driven by easing geopolitical tensions in the Middle East. Brent crude fell from $98.24 to $93.03 per barrel over the period, while WTI crude fluctuated around $93 to $95. The downturn followed an agreement between the Cabinet of Israel and the Government of Lebanon to renew a ceasefire and establish security zones in Lebanon to exclude Hezbollah militants.

Market volatility intensified as the United States House of Representatives approved a war powers resolution to halt military action against Iran, defying President Donald Trump. While the ceasefire reduced the geopolitical risk premium, analysts noted that the closure of the Strait of Hormuz continues to constrain supply, with restoration of shipping volumes expected to take several weeks.

U.S. markets showed mixed results. The Dow Jones Industrial Average rose 925 points on June 4, but the Nasdaq fell due to slumps in AI stocks. Broadcom Inc shares dropped over 15% following stagnant full-year guidance, and PVH Corp. saw a stock decline of over 20% as CEO Stefan Larsson cited the prolonged effects of the Middle East conflict and tariffs on customer demand.