Oil rises 1%, Brent crude closes above $94

Oil drilling rigs

Oil prices pared gains today, June 8, after Iran and Israel announced that they would halt their mutual attacks in response to a call from US President Donald Trump.  Prices had risen by more than 5% earlier in the session as tensions in the Middle East escalated.

Geopolitical caution remained in place after Iran confirmed it would resume strikes if Israel continued targeting Lebanon, dimming hopes for a swift end to the wider Middle East conflict.

Meanwhile, the Houthi group in Yemen announced a ban on ships linked to Israel passing through the Red Sea after Israel resumed attacks on Iran, adding new pressure on global shipping and energy flows.

On another front, the OPEC+ agreed during a meeting held on Sunday to raise the oil production ceiling for the fourth consecutive month, but analysts believe that the decision will not have a tangible impact on the market due to the disruptions in the Strait of Hormuz and the Ukrainian attacks that affected Russian production capacity.