By Adam Clark
Brent crude was edging down slightly on Friday after reports that Israel and Hezbollah have agreed to a cease-fire under pressure from President Donald Trump. Meanwhile, there were signs of resumed oil shipping through the key Strait of Hormuz route.
Brent crude futures, the international standard, were down 0.7% at $79.28 a barrel. West Texas Intermediate futures were falling 0.5% to $75.50 a barrel.
Oil was dropping following multiple reports that Israel had agreed to a ceasefire with the Iranian-backed Hezbollah militia in Lebanon, potentially unlocking U.S.-Iran peace talks.
On Thursday night, the White House said that Vance wouldn't travel to Switzerland for negotiations with Iran beginning Friday as plans for technical talks hadn't been completed. Iran told mediators that Israeli military action in Lebanon was a breach of the preliminary agreement and negotiations would only start once the strikes ended, The Wall Street Journal reported, citing officials.
Any concerns in the oil market might be relieved by tangible signs the vital Strait of Hormuz -- which normally carries around 20% of the world's daily oil traffic -- is reopening to traffic. Three Saudi-flagged supertankers carrying more than six million barrels of crude crossed the strait on Thursday, according to Kpler ship-tracking data.
The Trump administration still looks to be determined to press ahead with negotiations following the signing of a memorandum of understanding with Iran on Wednesday. Vance on Thursday rebuked Israeli critics of the deal amid renewed fighting in Lebanon
"The United States is committed to PEACE, and we encourage everyone in the Middle East Region to maintain their commitment to allowing our negotiations to beautifully unfold" President Donald Trump posted on Truth Social on Thursday. "The Markets are loving what is happening with Oil Prices way down, and Stocks way up. We expect a complete Ceasefire on all fronts, including Lebanon, Hezbollah, and Israel."
UBS analyst Henri Patricot in a research note: "Uncertainty remains around the pace of the ramp-up and potential toll after the 60-day period. Iran committed not to charge for passage via Hormuz for 60 days only."
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 19, 2026 09:41 ET (13:41 GMT)
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