BEIJING/PERTH: Oil prices fell on Thursday as a ceasefire deal between Israel and Lebanon boosted hopes for a broader agreement to end the U.S.-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz.

Brent futures were down 87 cents, or 0.89%, at $96.92 a barrel by 0458 GMT, while U.S. West Texas Intermediate crude fell 78 cents, or 0.81%, to $95.24, paring gains from earlier in the week.