Israel-Lebanon Ceasefire Begins As Oil Prices Drop 10% Amid Hormuz Assurance

A 10-day ceasefire, announced by U.S. President Donald Trump and accepted by both Israel and Lebanon, came into effect at midnight local time, bringing a temporary pause to weeks of intense hostilities.

The agreement follows more than a month of clashes between Israeli forces and the Iran-backed Hezbollah group based in southern Lebanon. The conflict has resulted in the deaths of nearly 2,200 people in Lebanon, most of them due to Israeli air strikes.

Israel's Defence Minister Israel Katz said on Friday that efforts to fully disarm Hezbollah in southern Lebanon are still ongoing. He made it clear that Israeli forces will continue to remain in the areas they currently control. Katz added that the primary objective of the campaign-disarming Hezbollah through either military or diplomatic means-remains unchanged.

At the same time, global oil markets saw a sharp reaction, with crude prices falling by around 10% after President Trump and Iran's foreign minister indicated that the Strait of Hormuz is open and operating normally.