Crude oil futures edged higher on Friday morning after Hezbollah rejected a ceasefire between Lebanon and Israel. Hezbollah’s rejection impacted the ongoing efforts to broker a peace deal between the US and Iran.
At 10 am on Friday, August Brent oil futures were at $95.39, up by 0.38 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $93.12, up by 0.09 per cent. June crude oil futures were trading at ₹8920 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹8842, up by 0.88 per cent, and July futures were trading at ₹8683 against the previous close of ₹8614, up by 0.80 per cent.
The Lebanon-based Hezbollah, which is supported by Iran, rejected a ceasefire proposal in Lebanon. Meanwhile, Israel said that it would not withdraw troops from Lebanon. It is to be noted that Iran wants a ceasefire in Lebanon to further its negotiations with the US.
In their Commodities Feed for Friday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said while there are few signs of progress in US-Iran talks, the oil market continues to trade on expectations of an imminent deal that would resume flows through the Strait of Hormuz. “This seems overly optimistic as Hezbollah rejects the Lebanon-Israel ceasefire. This development will not help US-Iran negotiations,” they said.
Sizeable inventories in the lead-up to the war have provided a buffer for the market. This buffer is shrinking with every passing day. They opined that the demand could grow by more than 3 million barrels a day quarter-on-quarter in the third quarter. The pace of inventory declines will only intensify through the July-September period.
“As we’ve seen since the war began, demand destruction does not need to come solely from higher crude oil prices — a lot of damage can be done by higher refined product prices,” they said.
A Reuters report said that Oman’s Mina al Fahal terminal has suspended oil loading following an explosion near its single-buoy mooring (SBM) berths. Citing two people familiar with the matter, Reuters report said the explosion occurred between SBM 1 and 2 berths due to an alleged drone attack.
June copper futures were trading at ₹1,362.70 on MCX during the initial hour of trading on Friday against the previous close of ₹1,376.35, down by 0.99 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹18,950 in the initial hour of trading on Friday against the previous close of ₹18,905, up by 0.24 per cent.
June dhaniya futures were trading at ₹12,550 on NCDEX in the initial hour of trading on Friday against the previous close of ₹12,584, down by 0.27 per cent.
Published on June 5, 2026
