Crude Oil is trading 3.2% down at $92.52 as major geopolitical developments ease tensions in the Middle East, reducing the risk premium on oil prices.
- An agreement for a ceasefire between Israel and Lebanon has been reached, which is raising hopes for a broader de-escalation of the U.S.-Iran conflict.
- The U.S. House of Representatives passed a resolution to limit the president's authority for military action in Iran, further reducing the likelihood of a wider conflict that could disrupt oil supplies through the Strait of Hormuz.
- These developments have prompted a sell-off after a multi-day rally that was driven by fears of supply disruptions.