Oil dips below $97 on ceasefire optimism

June 04, 2026 (MLN): Oil prices edged lower on Thursday after an Israel-Lebanon ceasefire agreement stoked optimism over a potential broader resolution to the U.S.-Israeli conflict with Iran, while the U.S. House of Representatives passed a resolution aimed at limiting President Donald Trump's authority to wage war.

Currently, Brent crude futures are down by $0.69, or 0.71%, to $96.95 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are down by 0.19%, to $95.19 per barrel by [09:25 am] PST.

The declines came after both benchmarks  moved higher on Wednesday as investors assessed the growing conflict between the United States and Iran, while signs of continued diplomatic engagement between the two countries helped temper fears of a wider escalation.

On the political front, the Republican-controlled House passed a war powers resolution seeking to rein in President Trump's ability to continue military operations against Iran, according to CNBC.

The measure faces steep hurdles, however, requiring Senate passage and two-thirds majorities in both chambers to overcome an expected presidential veto.

Meanwhile, diplomatic signals offered cautious grounds for optimism.

President Trump said on Wednesday that negotiations with Iran could yield progress as soon as this weekend.

Iranian Foreign Minister Abbas Araqchi confirmed that communication channels with Washington remain open, though he said no substantive headway has been made, with both sides still reviewing texts exchanged during talks.

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