Oil prices rise after Hezbollah rejects Israel ceasefire; weekly gains on tap in Oil & Companies News 05/06/2026 Oil prices rose in Asian trade on Friday after Iran-backed group Hezbollah rejected a ceasefire between Lebanon and Israel, undermining U.S. efforts to broker peace in the Middle East. Crude was headed for weekly gains after a flare-up in military tensions in the region, with the U.S. and Iran trading airstrikes, while bitter fighting between Israel and Hezbollah forces in Lebanon continued. Brent oil futures for August rose nearly 0.8% to $95.75 a barrel by 23:05 ET (03:05 GMT), while West Texas Intermediate crude futures rose 0.5% to $90.47 a barrel. Hezbollah rejects Israel ceasefire, undermines Iran peace hopes The Iran-backed, Lebanon-based Hezbollah militia rejected a proposed ceasefire with Israel on Thursday and said it will not withdraw troops from the country, while also denouncing Lebanon-Israel negotiations. Israel kept up its air strikes in southern Lebanon, drawing retaliatory attacks from Hezbollah. Israeli officials signaled that forces would not be withdrawing from southern Lebanon or halting operations in the country, after a brief pause earlier this week. The development further undermined hopes for a U.S.-Iran peace deal, given that Tehran has repeatedly signaled that a Lebanon ceasefire is paramount for any lasting peace agreement. Reports earlier this week showed Iran had halted indirect negotiations with the U.S., after Tehran accused Washington of violating their ceasefire with recent attacks. The U.S. struck several targets in Iran this week, drawing retaliatory attacks by the Revolutionary Guard against American targets in Kuwait and Beirut. The strikes came even as U.S. officials asserted that a peace deal with Iran was close and that talks were ongoing. But there has been little evidence of diplomatic progress with Iran, despite claims to the contrary from Washington since at least late-March. Oil heads for weekly gains as