Oil prices drop as Middle East tensions ease

Oil prices fell on June 4 after Israel and Lebanon agreed to renew their ceasefire and establish security zones, easing concerns about Middle Eastern supply disruptions that have pushed fuel costs higher for trucking operations. Brent crude dropped $2.42 to $95.39 per barrel, while U.S. benchmark crude shed $2.30 to $93.72 per barrel, according to Transport Topics. The decline came a day after the U.S. House passed a war powers resolution on June 3 seeking to halt military action against Iran, which has roiled global markets for three months. Crude had spiked on June 3 when both the U.S. and Iran announced retaliatory strikes, but prices have since retreated below their wartime peaks. Wall Street is watching for potential reopening of the Strait of Hormuz to oil tankers, which could improve global crude supply and further reduce prices at the pump. Current crude levels remain elevated from pre-war trading, meaning diesel and fuel surcharges will likely stay a significant line item for fleets. Markets showed mixed signals June 4 as stock futures diverged. The 10-year Treasury yield steadied at 4.47%, down slightly from 4.49% the previous day but still well above the 3.97% level before the Iran conflict began. Rising bond yields are already pushing mortgage rates to nine-month highs and could increase borrowing costs for fleet expansion and equipment purchases.