WTI crude futures slipped nearly 1% to around $95 per barrel on Thursday, breaking a three-day winning streak, as optimism inched higher over a possible agreement with Iran to help resolve the ongoing conflict. The United States announced that Israel and Lebanon had agreed to a ceasefire, contingent on Hezbollah also ceasing its attacks. However, there was no immediate sign that Hezbollah had accepted the proposed terms.
Adding to the diplomatic backdrop, President Trump said on Wednesday that progress in negotiations with Iran could come as early as this weekend. Nonetheless, regional tensions remain high. The US and Iran have carried out strikes against each other in recent days, and the conflict has spilled over into Bahrain and Kuwait.
On the supply side, EIA data showed that US crude oil inventories fell for a sixth straight week, pushing stockpiles closer to minimum operating levels.
