06:49 AM EDT, 06/04/2026 (MT Newswires) -- Oil fell as a conditional ceasefire between Israel and Lebanon offered to ease the way toward a US-Iran peace deal, even as the truce was marred by ongoing clashes, Bloomberg reported Thursday.

Brent futures retreated 2.2% below US$96 a barrel in thin trading volumes, snapping three days of gains in London. Still, Iran said there had been no recent progress in talks with the US over an interim peace deal, while fighting persisted in Lebanon despite Washington's declaration of a ceasefire subject to Tehran-backed Hezbollah stopping hostilities.

Washington and Tehran have sketched out a framework to extend their truce by two months and reopen the Strait of Hormuz, but negotiations are stalling and sporadic fighting has resumed. Iran insists a deal with the US requires a ceasefire in Lebanon but Trump said he'd like to keep the two separate.

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