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President Biden on Tuesday announced a cease-fire deal to stop the fighting between Israel and the Lebanese armed group Hezbollah, raising hope that it could bring a lasting end to the deadliest war in Lebanon in decades.
Minutes earlier, the Israeli prime minister’s office announced that ministers had approved the cease-fire proposal. The fighting has displaced over a million Lebanese and tens of thousands of Israelis, killed more than 3,000 Lebanese and 100 Israelis and upended the regional balance of power.
(Reuters) - Oil prices settled lower on Tuesday, extending Monday's losses in choppy trade after Israel agreed to a ceasefire deal with Lebanon, reducing oil's risk premium.
Brent crude futures settled down 20 cents, or 0.27%, to $72.81 a barrel. U.S. West Texas Intermediate crude futures settled at $68.77 a barrel, down 17 cents, or 0.25%.
Israel's security cabinet has agreed a ceasefire deal with Lebanon, Channel 12 reported. The accord was expected to take effect on Wednesday.
Israeli Prime Minister Benjamin Netanyahu said he was ready to implement a ceasefire deal with Lebanon and would "respond forcefully to any violation" by Hezbollah.
On Monday, oil prices fell more than $2 following multiple reports that Israel and Lebanon had agreed to the terms of a ceasefire in the Israel-Hezbollah conflict.
A ceasefire could pressure crude oil prices because the U.S. administration would likely reduce sanctions on oil from Iran, a supporter of Hezbollah, StoneX analyst, Alex Hodes said in a note on Tuesday.
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