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Global crude oil markets traded lower on Thursday as investors assessed encouraging developments from West Asia.
News of a ceasefire agreement between Israel and Lebanon fuelled expectations that diplomatic efforts could help prevent a wider regional conflict.
Brent crude, the international benchmark, slipped 1.33 per cent to $96.50 a barrel. US benchmark West Texas Intermediate (WTI) also retreated by more than 1 per cent, settling near $94.76 per barrel.
The decline in prices came a day after oil markets rallied strongly on fears of escalating conflict in the region.
Earlier gains were driven by reports of Iranian attacks on Kuwait and US military operations near the strategically significant Strait of Hormuz.
Investors also monitored political developments in Washington.
Lawmakers in the Republican-led House of Representatives passed a resolution seeking to place limits on President Donald Trump’s ability to pursue further military action against Iran.
At the same time, Trump suggested that discussions with Tehran could achieve meaningful progress within days.
Iranian Foreign Minister Abbas Araqchi confirmed that communication with the United States remains active. He noted that the two sides have not yet reached a breakthrough and continue to evaluate proposals exchanged during recent negotiations.
Despite signs of diplomatic engagement, security concerns persisted across the Gulf region.
Reports indicated that Iranian drones struck Kuwait International Airport following renewed exchanges between Tehran and Washington.
The incident injured several people, damaged infrastructure, and prompted authorities to temporarily halt airport operations.
Weak sentiment continued to dominate international stock markets.
Major Asian indices, including Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s KOSPI, and Indonesia’s Jakarta Composite, recorded declines of up to 3 per cent.
US equities also ended the previous session in negative territory.
The S&P 500 lost 0.74 per cent, while the technology-heavy Nasdaq dropped 0.9 per cent.
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