Crude oil slips 1% as Israel-Lebanon ceasefire lifts West Asia mood
Synopsis
A ceasefire between Israel and Lebanon pulled crude back from a two-day rally, even as Iranian drones reportedly hit Kuwait International Airport and the US House moved to clip Trump's war powers on Iran. With Brent at $96.50 and the Strait of Hormuz still a live flashpoint, the relief in oil markets looks fragile.
Key Takeaways
Brent crude fell 1.33% to $96.50 per barrel ; WTI slipped over 1% to $94.76 .
Trigger: Israel-Lebanon ceasefire agreement reviving diplomatic hopes around the Iran conflict.
US House of Representatives passed a resolution to limit Trump's military authority on Iran.
Iranian drones reportedly struck Kuwait International Airport , suspending air traffic operations.
Asian indices fell up to 3% ; Sensex and Nifty opened down around 0.5% .
Global crude oil prices fell more than 1 per cent on Thursday after Israel and Lebanon agreed to implement a ceasefire, reviving hopes of a wider diplomatic thaw that could cool tensions around the ongoing Iran conflict. The pullback partially unwound a near 2 per cent spike in the previous session triggered by fresh hostilities across West Asia.
Where prices settled
International benchmark Brent crude declined 1.33 per cent to $96.50 per barrel, while US West Texas Intermediate (WTI) slipped over 1 per cent to $94.76 per barrel. Both contracts had rallied a day earlier after Iranian attacks on Kuwait and US military strikes near the strategic Strait of Hormuz stoked supply-disruption fears.
Diplomatic signals from Washington and Tehran
In Washington, the Republican-controlled House of Representatives passed a resolution seeking to curb President Donald Trump's authority to continue military operations against Iran. Trump, for his part, said progress in negotiations with Tehran could surface as early as this weekend.
Iranian Foreign Minister Abbas Araqchi said contacts with Washington had not been cut off, though he acknowledged that talks were yet to yield meaningful progress, with both sides still reviewing exchanged proposals.
Gulf flashpoint: Kuwait airport hit
Even as ceasefire hopes lifted markets, Gulf tensions escalated further after Iranian drones reportedly targeted Kuwait International Airport following a fresh exchange of strikes between the United States and Iran. Several people were injured and airport infrastructure was damaged. The Kuwaiti military said the attack caused significant material damage, forcing authorities to suspend air traffic operations.
Equities stay jittery
Weak sentiment persisted across global equities. Major Asian indices — Japan's Nikkei, Hong Kong's Hang Seng, South Korea's KOSPI and Indonesia's Jakarta Composite — fell by as much as 3 per cent. US markets had closed lower overnight, with the S&P 500 down 0.74 per cent and the Nasdaq ending 0.9 per cent lower.
Back home, domestic benchmarks Sensex and Nifty opened lower on Thursday, slipping around 0.5 per cent amid selling pressure in IT, realty, pharma and healthcare stocks.
What to watch
Traders will track the durability of the Israel-Lebanon ceasefire, any concrete movement in US-Iran talks this weekend, and further developments around the Strait of Hormuz — the chokepoint through which nearly a fifth of global oil supply flows.
Point of View
Not fundamentals. With Iranian drones still hitting Kuwait's main airport and the Strait of Hormuz a live tripwire, a 1% pullback in Brent looks more like positioning relief than a genuine de-escalation premium. The real signal will come from this weekend's US-Iran contact — until then, every headline out of the Gulf can flip the tape. For India, a net oil importer, even a fragile ceiling on crude is good news for the rupee and inflation math.
NationPress
8 Aug 2026
Frequently Asked Questions
Why did crude oil prices fall today?
Crude oil prices fell more than 1% on Thursday after Israel and Lebanon agreed to implement a ceasefire, raising hopes of a broader diplomatic breakthrough that could ease tensions around the Iran conflict. The drop partly reversed a near 2% jump in the previous session.
What are the latest Brent and WTI prices?
Brent crude fell 1.33% to $96.50 per barrel, while US West Texas Intermediate (WTI) declined over 1% to $94.76 per barrel.
What happened at Kuwait International Airport?
Iranian drones reportedly targeted Kuwait International Airport following a fresh exchange of strikes between the United States and Iran. Several people were injured, infrastructure was damaged, and the Kuwaiti military said authorities suspended air traffic operations.
How are equity markets reacting?
Asian indices including Japan's Nikkei, Hong Kong's Hang Seng, South Korea's KOSPI and Indonesia's Jakarta Composite fell by as much as 3%. The S&P 500 closed 0.74% lower and the Nasdaq 0.9% lower overnight, while India's Sensex and Nifty opened down around 0.5%.
What is the US Congress doing on the Iran conflict?
The Republican-controlled House of Representatives passed a resolution seeking to limit President Donald Trump's authority to continue military operations against Iran. Trump separately said progress in talks with Tehran could emerge as early as this weekend.
