Israel and Hizbollah agree ceasefire

Hizbollah and Israel agreed to a ceasefire on August 1, 2024, following weeks of escalating cross-border hostilities. The agreement, brokered by international mediators, aims to de-escalate tensions and prevent a wider conflict in the region. This development has led to a notable decrease in global oil prices, as markets anticipate that the ceasefire could bolster ongoing diplomatic efforts between the United States and Iran. The potential for improved relations and reduced geopolitical risk in the Middle East has eased concerns about supply disruptions, contributing to the oil price decline.