Oil prices fell $2 per barrel, capping a weekly loss as Middle East tensions eased with a shaky Gaza ceasefire. The drop reflected a fading “risk premium” tied to fears of supply disruptions, which had spiked during Israel-Hamas clashes and Hezbollah-Israel skirmishes. Brent crude settled lower, per Reuters, as markets recalibrated to a less volatile outlook. While the ceasefire’s fragility kept traders cautious, the immediate de-escalation offered relief to global energy markets already navigating economic headwinds.

The price slide rippled through stocks, though specific company impacts weren’t detailed in Sunday’s reports. Energy firms faced pressure, but broader indices held steady, buoyed by hopes of stabilized supply chains. The Middle East’s outsized role in oil markets—OPEC’s heft, Iran’s proxies—means any truce, however tentative, shifts investor sentiment fast. Yet, analysts warn the calm could be short-lived: Israel’s West Bank offensive and stalled prisoner talks hint at unresolved flashpoints. For now, businesses and consumers alike welcome cheaper fuel, but the market’s respite hinges on a peace that’s far from guaranteed.