On Thursday, oil prices rose 1%, with Brent crude futures settling at $95.92 per barrel and U.S. West Texas Intermediate crude at $97.87 per barrel. This increase came amid Israel's announcement to start peace talks with Lebanon, including discussions on disarming Hezbollah. Earlier in the session, prices surged over 5% due to concerns about the durability of a ceasefire between the United States and Iran, which raised fears about energy flow restrictions through the Strait of Hormuz. However, these gains were tempered as doubts about the ceasefire's effectiveness lingered, with ship traffic through the strait dropping to less than 10% of normal levels. Additionally, Saudi Arabia reported a reduction in oil production capacity by approximately 600,000 barrels per day, further complicating the supply situation. Analysts caution that even if shipments resume, risks related to military presence and insurance costs will keep prices elevated.