Oil nudged higher in early trade as front‑month WTI crude settled 0.2% up at $92.31 a barrel. The rise came after President Trump said Israel and Hezbollah had agreed to cease hostilities, a development he presented as a step toward stabilising the Middle East. The modest rise also mirrored broader risk sentiment as traders weighed optimism.

The cease‑fire claim offered little relief to diplomats tracking U.S.-Iran nuclear talks, which remain stalled despite the diplomatic overture. Renewed skirmishes in the region keep the Strait of Hormuz vulnerable, a chokepoint that channels roughly a third of global oil flow. Analysts at Tickmill warned that any extension of restrictions could sustain price pressure. The threat of Iranian retaliation further fuels market nerves.

Investors will watch the $92‑plus level as a barometer for how geopolitical risk feeds into commodity markets. A prolonged impasse in Tehran‑Washington talks could keep the market on the upside, while a rapid de‑escalation might allow prices to drift lower. For now, oil remains perched above $90, reflecting entrenched uncertainty. Any shift in the diplomatic calculus will quickly ripple through futures curves.