ALBAWABA – Oil recorded a significant decline yesterday after Israel agreed to ceasefire in Lebanon, following recent high increases.
Oil drops after the ceasefire decision in Lebanon
Brent crude futures decreased by almost 54 cents (0.74%), reaching $72.47 per barrel, while US West Texas Intermediate (WTI) crude futures were recorded at approximately $68.45 a barrel, down by 49 cents (0.71%).
According to the Israeli Channel 12, the Israeli Security Cabinet agreed on the decision to ceasefire in Lebanon yesterday. The agreement will take effect today, as stated by Israeli Prime Minister Benjamin Netanyahu.
The precious yellow metal traded at nearly $2,630 per ounce. (Shutterstock)
It is worth noting that Alex Hodes, a StoneX analyst, said that the ceasefire decision will possibly affect crude prices, especially considering that the US administration is planning to ease sanctions on Iranian oil.
Gold prices decline equally
Additionally, gold prices recorded a slight decrease after the ceasefire decision was implemented. The precious yellow metal traded at nearly $2,630 per ounce. Gold dropped 3% after Israel and Hezbollah agreed to stop the war for 60 days.
Despite this significant decline, the precious metal is still up more than 25% this year, driven by US monetary policy and rising geopolitical tensions.
Spot gold declined by almost 0.1%, reaching $2,630.57 an ounce this morning, while the Bloomberg Dollar Spot Index (BBDXY) was also down by 0.1%. However, Silver, platinum, and palladium prices remained stable.
Analysts are anticipating the Federal Reserve's November report, which will provide insights into inflation rates and significantly affect gold, dollar, and oil prices.
