Global Oil Prices Plunge as Israel-Lebanon Ceasefire Eases Middle East Tensions
New York, Thursday, 4 June 2026.
Oil prices dropped over 3% on Thursday following a fresh Israel-Lebanon ceasefire, sparking market optimism for broader Middle East stability and normalizing critical Strait of Hormuz shipping routes.
Geopolitical Relief Drives Market Correction
In early trading on Thursday, crude oil benchmarks tumbled more than 3 percent [1]. West Texas Intermediate (WTI) futures slid toward $92 per barrel from roughly $95 per barrel on Wednesday, representing a decline of approximately -3.158 percent from the prior session’s highs [1][4]. The international benchmark Brent crude hovered between $94.70 and $95 per barrel [1]. This sharp decline effectively erased the gains accumulated over the previous three trading sessions [1]. Just one day prior, WTI had risen over 1 percent, driven by overnight confrontations involving United States and Iranian forces that inadvertently caught Kuwait and Bahrain in the crossfire [4].