Oil prices experienced a significant drop and weekly losses of 8% following the agreement between Israel and Hezbollah for a ceasefire. The decline reflects reduced fears of wider conflict in the Middle East disrupting oil supplies. However, ongoing tensions between the United States and Iran continue to introduce uncertainty into the oil market. Analysts suggest that while the ceasefire provides temporary relief, the geopolitical landscape remains volatile. The potential for further escalation, particularly involving Iran, keeps upward pressure on prices. Market watchers are closely monitoring the situation for any developments that could impact global oil production and distribution. This complex interplay between de-escalation and persistent risk is currently shaping oil price movements.