Oil prices fall due to Trump's optimism and ceasefire in Lebanon

While a ceasefire between Israel and the Iranian-backed Hezbollah militia has been in place in Lebanon since midnight, US President Donald Trump is confident that an agreement can be reached in the war with Tehran. "We are very close to an agreement," he told reporters outside the White House. If necessary, he would extend the ceasefire, which is due to last until Wednesday, Trump said.

Under strong economic pressure due to the blockade of the Strait of Hormuz, Germany, France and the UK, among others, are discussing a possible military mission after the Iran war in Paris on Friday (today). The aim is to draw up a "multinational plan" to secure the strait.

Signs of stabilization

"The prevailing theme now is not escalation but stabilization," Priyanka Sachdeva, senior market analyst at broker Phillip Nova Pte, told Bloomberg news agency. "The oil markets are sending a clear message: fear drove the rally, diplomacy is driving the correction, and uncertainty will drive volatility going forward."

The oil market has been badly shaken by the conflict. The fighting led to an unprecedented supply shock after Tehran halted most shipping through the Strait of Hormuz, disrupting a fifth of global oil flows. Most recently, the US also imposed its own naval blockade.