Oil Prices Today, June 4, 2026: Crude Oil Prices Retreat To $97 As Israel-Lebanon Ceasefire Boosts Hopes of Peace in Middle East

Mumbai, June 4: Oil prices eased on Thursday after Israel and Lebanon agreed to implement a ceasefire, raising hopes that a broader diplomatic breakthrough could help end the U.S.-Israeli conflict with Iran and reduce risks to global energy supplies.  

Brent crude futures fell 0.9% to $96.9 a barrel, while U.S. West Texas Intermediate (WTI) crude declined by the same amount to $95.2 a barrel. The pullback came after both benchmarks had gained about 2% on Wednesday as renewed hostilities in the Middle East heightened fears of supply disruptions.  

Ceasefire sparks optimism 

The latest decline in crude prices followed an announcement that Israel and Lebanon would implement a ceasefire, a move seen as an important step toward a wider agreement involving Iran. The development has fuelled hopes that diplomatic efforts could eventually help stabilise the region and reduce risks to oil shipments through key routes such as the Strait of Hormuz.  

Also Read: How To Invest In Crude Oil 

Investors also took note of political developments in the United States, where the House of Representatives approved a resolution seeking to limit President Donald Trump’s ability to continue military action against Iran. While the measure still faces significant legislative hurdles, it reinforced expectations that diplomatic channels may remain open.  

Both benchmarks eased on diplomatic hopes even as prices stayed elevated. Source: oilprice.com 

U.S. President Donald Trump indicated that progress in talks with Iran could emerge as early as this weekend. However, Iranian Foreign Minister Abbas Araqchi said that while contacts between Tehran and Washington continue, no tangible progress has been achieved so far.  

Supply concerns remain 

Despite Thursday’s decline, crude prices remain well above levels seen before the latest escalation in Middle East tensions. Earlier this week, Iranian attacks on Kuwait and U.S. military strikes near the Strait of Hormuz reignited concerns over potential disruptions to global oil flows, pushing prices sharply higher.  

Adding support to prices, U.S. crude inventories fell by 8 million barrels to 433.7 million barrels in the week ended May 29, according to data from the Energy Information Administration. The decline was double the 4-million-barrel draw expected by analysts, signalling robust demand and tighter supply conditions.  

Impact on India 

For India, which imports more than 80% of its crude oil requirements, any sustained decline in oil prices would be a positive development. Lower crude prices can help ease inflationary pressures, reduce import costs and improve the country’s trade balance. 

However, markets are likely to remain highly sensitive to developments in the Middle East, with any setback in ceasefire efforts or negotiations with Iran capable of triggering fresh volatility in global energy markets. 

Source: rates from oilprice.com