New Delhi, June 4: Oil prices worldwide fell by more than 1% on Thursday following the announcement of a ceasefire agreement between Israel and Lebanon. This development has raised hopes for a broader diplomatic resolution, potentially easing tensions related to the ongoing conflict involving Iran.
The international oil benchmark, Brent crude, saw a decline of 1.33%, settling at $96.50 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude dropped by over 1%, reaching $94.76 per barrel.
This price drop comes after both major benchmarks had risen nearly 2% in the previous trading session. The increase was driven by escalating tensions in West Asia, including Iran’s attacks on Kuwait and U.S. military actions near the Strait of Hormuz.
In the U.S., the Republican-controlled House of Representatives approved a resolution aimed at limiting President Donald Trump’s authority to continue military operations against Iran.
Trump indicated that progress in negotiations with Iran could emerge by the weekend.
Iran’s Foreign Minister Abbas Araghchi stated that communications with Washington have not completely ceased. However, he noted that no substantial progress has been made in talks, with both sides currently reviewing each other’s proposals.
Tensions in the Gulf region escalated further after a series of new attacks exchanged between the U.S. and Iran, culminating in an Iranian drone targeting Kuwait International Airport. This attack resulted in several injuries and damage to airport infrastructure.
The Kuwaiti military reported significant material damage, leading authorities to temporarily halt air traffic operations.
Global stock markets also experienced weakness, with Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s KOSPI, and Indonesia’s Jakarta Composite Index dropping by up to 3%.
U.S. markets closed lower the previous night, with the S&P 500 index down by 0.74% and the Nasdaq falling by 0.9%.
Additionally, domestic stock markets showed signs of weakness. On Thursday, the Sensex and Nifty opened nearly 0.5% lower, with selling pressure observed in the IT, real estate, pharma, and health sectors.
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