Brent crude futures dropped over 2% to $73.30 per barrel on Monday, following reports that Israel and Hezbollah may be close to reaching a cease-fire agreement, potentially within days.
Oil prices down as tensions ease
While traders cautiously welcomed the news, many remained hesitant, waiting for further details given the history of failed cease-fire announcements. Meanwhile, traders are closely monitoring the situation in Ukraine after tensions with Russia escalated last week.
Iran's moves
Additionally, Iran announced plans to expand its nuclear fuel production capacity after being censured by the UN atomic watchdog, as the OPEC member braces for potential sanctions under a second Trump administration. Investors are also keeping an eye on the upcoming OPEC+ meeting on December 1st, where the cartel is expected to delay planned output increases.
