Oil prices slipped early Thursday as President Donald Trump pushed a U.S.-backed partial ceasefire between Israel and Hezbollah. The Lebanese embassy in Washington confirmed Hezbollah’s acceptance, easing fears of a broader Middle‑East clash that could threaten the Strait of Hormuz. Brent fell 0.9% to $94.14 a barrel, while WTI dropped to $91.31. The move follows U.S. pressure on Israel to limit its Lebanon push.

Treasury yields and the dollar retreated from overnight peaks, reflecting the diplomatic de‑escalation. U.S. stock futures opened lower, with the S&P 500 down 0.1% and the Dow slipping 0.2%, while the Nasdaq edged down 0.2%. European markets bucked the trend, posting modest gains as AI‑driven stocks lifted the continent. Investors also noted that weaker dollar support could temper upside in commodity prices amid the diplomatic lull.

Analysts at ING warned that oil direction remains hostage to Iran‑related headlines and the uncertain pace of U.S.–Iran talks. With April job‑openings data on the horizon and non‑farm payrolls due Friday, traders will gauge whether the ceasefire holds enough to sustain the recent rally. The market now watches diplomatic signals more than price charts.