Crude oil prices top $106/bbl amid Israel-Lebanon ceasefire deal extension; Gold down 0.3%

Crude oil prices were trading above $106 per barrel (bbl) levels during the early market hours on Friday, April 24, as traders remained cautious amid US President Donald Trump’s recent announcement of Lebanon and Israel extending their ceasefire deal by three weeks.

The market sentiment also remained heightened due to President Trump's earlier directive to the US Navy to shoot down any boats planting mines at the Strait of Hormuz, amid a ceasefire deal which has been extended between Iran and the United States, till further notice giving time to the Gulf nation to come up with a potential peace agreement.

During Thursday’s trading hours, the Brent crude oil prices surged to hit an intraday high of $107.40 per bbl marking the third consecutive day of oil prices elevated above the $100 per bbl psychological mark.

The West Texas Intermediate (WTI) crude oil prices also hit $98 per bbl during Thursday’s trading session after opening around $92 per bbl region, as investors' hopes faltered over any updates related to the second round of peace deal talks between Iran and the United States.

Oil prices today

As of 7:33 am (IST), the Brent crude oil prices were trading 1.24% higher at $106.37 per bbl on Friday, compared to $106.44 per bbl at the previous market close, according to Investing.com data.

The US-based WTI crude oil prices were trading 1.18% higher at $96.98 per bbl as of 7:34 am on April 24, compared to $95.85 per bbl at the previous market close, as per the exchange data.

Why are oil prices rising today?

Oil prices were trading higher on Friday’s commodity market session as the investors remained cautious with the US blockade, Trump’s recent comments and directives on attacks in Strait of Hormuz which can likely emerge into further escalations, and dampened hopes of the countries reaching a peace deal.

During the early hours on Friday, India time, Trump announced that the United States is looking to work with Lebanon in order to ‘help it protect itself from Hezbollah.’ The US leader also announced that Israel and Lebanon will extend their ceasefire deal by three weeks.

“The Ceasefire between Israel and Lebanon will be extended by THREE WEEKS. I look forward in the near future to hosting the Prime Minister of Israel, Bibi Netanyahu, and the President of Lebanon, Joseph Aoun,” said Trump in his post.

On the military action front, Trump on Thursday evening said that he has ordered the US Navy to “shoot and kill any boat” planting mines in the waters of Strait of Hormuz, without any hesitation to clear the key trading route.

Despite the ceasefire deals and enforcement actions, the supply through the key trading route remains disrupted, weighing down on the exports from Gulf nations, further impacting the global oil prices.

Gold prices today

The New York Mercantile Exchange-based COMEX gold prices were trading 0.37% lower at $4,705.40 per bbl as of 10:19 pm (EDT) on Thursday, April 23, compared to $4,724 per bbl at the previous commodity market close, according to the official data.

The gold prices remained under pressure due to the higher dollar demand and uncertainty of a peace deal in near term. Traders tend to buy less quantity of gold with a higher US dollar rate in the market, a factor which weighs down on the demand for the precious yellow metal and its prices.

Bloomberg US dollar spot index (DYX) data showed that the US greenback was trading 0.05% higher at 98.822 as of 10:20 pm (EDT) on April 23, compared to the previous currency market close.