Key Takeaways:

* Trump signals progress toward a potential permanent U.S.–Iran ceasefire

* Possible reopening of Strait of Hormuz weighs on oil prices

* Israel–Lebanon ceasefire adds to broader regional de-escalation hopes

* Oil declines as supply disruption fears ease

Market Summary:

Crude oil prices declined sharply as geopolitical tensions in the Middle East showed signs of easing, following renewed optimism surrounding a potential long-term ceasefire between the United States and Iran.

Donald Trump struck an optimistic tone, suggesting that both sides are progressing toward a more permanent ceasefire agreement, with discussions ongoing ahead of the current truce’s expiration next week. Trump indicated that a potential deal could include key elements such as limiting Iran’s nuclear ambitions, transferring nuclear materials, and ensuring the reopening of the Strait of Hormuz — a critical global oil transit route.

However, Iranian officials have yet to publicly confirm these concessions, leaving some uncertainty around the credibility and timeline of any agreement.

Adding to the improving sentiment, Trump also announced that Israel and Lebanon have agreed to a 10-day ceasefire, with Israeli Prime Minister Benjamin Netanyahu confirming the move as part of broader efforts toward a potential “historic peace agreement.” This development has helped ease broader regional tensions, further reducing immediate risks to global energy supply.

Against this backdrop, oil prices came under pressure as markets increasingly priced in the possibility of stabilizing supply conditions, particularly if the Strait of Hormuz reopens in the coming weeks. The easing of geopolitical risk premium has led traders to unwind earlier bullish positions tied to supply disruption fears.