Pakistan, June 5 -- Oil prices fell on Thursday as a ceasefire deal between Israel and Lebanon boosted hopes for a broader agreement to end the US-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz.

Brent futures were down 87 cents, or 0.89%, at $96.92 a barrel by 0458 GMT, while US West Texas Intermediate crude fell 78 cents, or 0.81%, to $95.24, paring gains from earlier in the week.

Both Brent and WTI rose about 2% on Wednesday after renewed Middle East hostilities including Iranian attacks on Kuwait and US military strikes near the Strait of Hormuz.

Israel and Lebanon ?said late on Wednesday they had agreed to implement a ceasefire, raising hopes for a deal between Washington and Tehran, which has conditio...