Israel-Lebanon talks

What happened: Israel and Lebanon agreed to a 10-day ceasefire, effective 5 p.m. ET, following talks in Washington. This is the first high-level meeting between the two countries in decades. The temporary truce begins after a recent escalation in tensions, with both sides exchanging fire across the border.

Market impact: Oil prices fell following the announcement, with U.S. crude oil futures down 1.45% and Brent crude declining 1.11%. The ceasefire raised hopes of wider de-escalation, potentially reducing geopolitical risk premium in oil prices.

What to watch next: On May 12, the 10-day ceasefire will expire, and the market will closely monitor any developments regarding its extension or renewal. Additionally, the next OPEC+ meeting on June 2 will be crucial, as any changes in production policy could further impact oil prices.