Oil prices retreated significantly Thursday following announcements of a renewed ceasefire agreement between Israel and Lebanon. The pact includes the establishment of “pilot” security zones barring Hezbollah militants, easing regional tensions that had driven crude prices higher earlier this week.

Brent crude futures fell by more than two dollars to trade near $95.39 per barrel, while U.S. benchmark crude dropped to around $93.72 per barrel. This pullback came after a surge prompted by retaliatory strikes between the U.S. and Iran raised fears of prolonged conflict disrupting oil supply. Markets now show tentative optimism that an eventual reopening of the Strait of Hormuz to oil tankers could alleviate constraints on global crude flow and stabilize prices.

On Wall Street, futures markets reflected a tentative tone following a sharp correction the previous day that snapped the S&P 500’s nine-day winning streak. S&P 500 futures edged down modestly, while Dow Jones futures rose. Nasdaq futures, meanwhile, sank over one percent, weighed down by sharp declines in major tech stocks.

Chipmaker Broadcom’s shares plunged more than 15% overnight despite beating sales and profit expectations. Investors appeared to react negatively to the company’s decision to maintain its full-year guidance rather than raising it amid strong revenue gains. Similarly, shares of PVH Corp., the parent of consumer brands including Calvin Klein, dropped sharply after reporting strong quarterly results but warning of ongoing headwinds from tariffs and geopolitical tensions related to the Iran conflict.

Bond markets showed signs of stabilization after yields on the 10-year U.S. Treasury note eased slightly to 4.47%. This is down from the previous day but remains elevated compared to pre-conflict rates. Persistently high yields worldwide threaten to slow economic growth by raising borrowing costs for companies and consumers alike. Higher interest rates have already pushed long-term mortgage costs to a nine-month peak, potentially curbing financing for sectors like technology that rely heavily on borrowing for expansion.

Despite these pressures, U.S. equity indexes continue to trade near record levels, reflecting cautious investor confidence amid persistent inflation and geopolitical uncertainty. The recent military and political developments have reshaped market dynamics, complicating the outlook for commodities and equities alike.