Ceasefire reportedly near – then Saab and oil backed down

A ceasefire between Israel and the Iran-backed Lebanese militia Hezbollah is reportedly near, according to several media outlets. This led to a sharp decline in oil prices and defense stocks, reports Dagens industri.

The reports of an imminent ceasefire emerged on Monday afternoon. By 3 pm, both Brent and WTI oil prices took a clear downturn, and stood at a 2.7 percent loss each at the Stockholm Stock Exchange's closing.

In parallel, European defense companies also fell back. Swedish Saab closed at a 3.1 percent loss, after having been down 0.3 percent when the news broke, while British BAE Systems fell 2.9 percent and Italian Leonardo 2.5 percent.

CNN reports that the conditions for the ceasefire have been "in principle" approved by Israel's Prime Minister Benjamin Netanyahu. The arrangement is based on a nearly 20-year-old resolution and involves, among other things, Hezbollah leaving the border area against Israel in favor of the Lebanese army.