Crude oil prices slipped in early Thursday trading as easing geopolitical tensions in the Middle East triggered a mild pullback across global benchmarks.
As at 06:15 am (WAT), Brent crude was trading around $96.60 per barrel, while West Texas Intermediate (WTI) hovered near $94.90 per barrel, both extending losses after recent volatility driven by regional conflict concerns.
The decline follows the announcement of a ceasefire agreement between Israel and Lebanon, which has helped calm fears of a broader escalation in the region. The development has prompted traders to reassess the geopolitical risk premium that had supported prices in previous sessions.
Market attention has now shifted back to diplomatic expectations surrounding a potential U.S.–Iran deal, with analysts suggesting that renewed talks could eventually ease tensions around the Strait of Hormuz and improve global supply flows.
Despite the current pullback, sentiment remains fragile, as investors remain cautious about the durability of the ceasefire and the uncertain trajectory of Iran nuclear negotiations.
Overall, traders say the market is still being driven more by fast-changing geopolitical headlines than by underlying supply-demand fundamentals, keeping volatility elevated in the short term.