Oil shrugs off Israel-Lebanon ceasefire extension

Israel and Lebanon have extended the ongoing ceasefire for three more weeks at a meeting brokered by US President Donald Trump.

IMAGE: Flags of Israel and Lebanon. Getty Images

“The Meeting went very well!” Trump said on social media platform Truth Social.

Brent crude’s price has barely reacted to the news as the ceasefire extension comes amid increased cross-border fighting between Tel Aviv and Beirut.

Yesterday, the Israel Defense Forces (IDF) struck Lebanon-based Hezbollah targets in southern Lebanon, despite their 16 April deal to pause hostilities temporarily, Reuters reported.

The IDF has accused Hezbollah militants of attacking its troops in the region and fired drones towards northern Israel, Reuters added.

Clashes between Israel and Iran-backed Hezbollah militant group have emerged as a key obstacle to resolving the broader Middle East conflict – now in its eight week – alongside tensions over control of the strategic Strait of Hormuz.

Nonetheless, Brent crude’s price is poised to end the week well-above $100/bbl, as the fragile ceasefire holds little ground and the Strait blockade remains unresolved, according to market analysts.

By Aparupa Mazumder

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