(Bloomberg) -- Oil steadied after a sharp decline in the previous session as Israel said that it had edged closer to a cease-fire agreement with Hezbollah.

Most Read from Bloomberg

• New York City’s ‘Living Breakwaters’ Brace for Stormier Seas

• In Kansas City, a First-Ever Stadium Designed for Women’s Sports Takes the Field

• NYC's Underground Steam System May Be Key to a Greener Future

• NYC Gets Historic Push for 80,000 Homes With $5 Billion Pledge

West Texas Intermediate traded near $69 a barrel after losing 3.2% on Monday, while Brent crude closed near $73. Israel said it’s potentially days away from a deal with the Iran-backed group, which could diminish the risk to Middle Eastern crude supply and ships traversing the region. Still, it remains unclear if Hezbollah will accept a truce.

Oil has been trading in a tight range since the middle of October, with traders weighing geopolitical risks centered around supply from Russia and Iran against expectations for a glut next year. Ahead of a meeting by OPEC+ this weekend, Iran’s representative to the producer group said the cartel has little scope to reverse output cuts due to more supplies from elsewhere.

Meanwhile, President-elect Donald Trump said the US will impose new tariffs on China, Canada and Mexico in a post on Truth Social. The announcement threatens to exacerbate tensions between the US and its key trading partners and led to a strengthening of the dollar, which may reduce the appeal of commodities.

To get Bloomberg’s Energy Daily newsletter into your inbox, click here.

Most Read from Bloomberg Businessweek

• What Happens When US Hospitals Go Big on Nurse Practitioners

• Why the Flying Experience Feels So Much Worse

• The Charm Bracelet Shop That Keeps Going Viral

• Clear’s Dominance in Airports Could Be Coming to an End

• An Airline’s Florida Resort Dreams Look More Like a Nightmare

©2024 Bloomberg L.P.