HOUSTON: Oil prices were down by around three per cent on Thursday on investor hopes for an end to the US-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz, following a ceasefire deal between Israel and Lebanon.

Brent futures were down $3.20, or 3.27pc, at $94.61 a barrel at 1:28pm EDT, while US West Texas Inter­mediate crude was down $3.71, or 3.86pc, at $92.31.

“Once again the market is giving full credit to hopes of a resolution here and the worries about supplies are just not registering with the market,” said John Kilduff, partner at Again Capital.

“This latest development with Israel and Lebanon is pulling the rug out from under any sort of bullish thesis today,” Kilduff added. The two contracts rose about 2pc on Wednesday after renewed Middle East hostilities, including Iranian attacks on Kuwait and US military strikes near the Strait of Hormuz.

“Crude futures are reversing yesterday’s gains and then some on news that Israel and Lebanon have entered a peace deal,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Published in Dawn, June 5th, 2026