Oil price sinks three percent amid Lebanon ceasefire reports

The price of oil, a key metric for geopolitical risk, has sunk three percent amid reports that Israel and Hezbollah are inching closer to a ceasefire in Lebanon. 

Brent crude was trading down 2.83 percent on Monday to $72.52 per barrel amid reports that Israel and Hezbollah are nearing a ceasefire. 

The risk that fighting in Lebanon could spiral into a full war between Israel and oil-rich Iran has kept oil markets on edge, although prices are relatively low.