Oil prices fell in early trading on Tuesday due to investor reaction to a potential ceasefire agreement between Israel and Hezbollah.
Brent crude futures dropped by 28 cents, or 0.38%, to $72.73 a barrel, while U.S. West Texas Intermediate crude futures decreased by 32 cents, or 0.46%, to $68.62 a barrel.
On Monday, both benchmarks experienced a significant decline of $2 per barrel following reports of a resolution to the conflict between Lebanon and Israel.
Analysts from ANZ mentioned that a ceasefire in Lebanon could impact market sentiment by reducing the likelihood of strict sanctions on Iranian crude oil from the incoming U.S. administration.