Monday, August 14 2006 15:47 Hrs (IST) - World Time -

Singapore: "Oil prices declined in Asian hours today (Aug 14, 2006) as a UN-brokered truce and the eventual deployment of an international force in Lebanon sparked hopes of an end to the bloodshed, "dealers said.

"Israeli Prime Minister Ehud Olmert ordered his country's military to halt fighting at 2300 GMT (4:30 IST Monday) Sunday, six hours ahead of the 0500 GMT (10:30 IST) deadline agreed with the UN,"the Haaretz daily said.

Last evening, Olmert met with Defense Minister Amir Peretz and senior military leaders, and gave the order to begin respecting early the cessation of hostilities called for in UN Security Council resolution 1701 adopted on Friday unless fired upon, the newspaper said.



At 11:35 am (0905 IST), New York's main contract, light sweet crude for delivery in September, was at 73.70 dollars a barrel, down 65 cents from its close of 74.35 dollars in the United States on Friday.



Brent North Sea crude for September delivery was down 54 cents to 75.09.



"The announcement of the truce in Lebanon is the main story overnight," said Tony Nunan, manager for energy risk management at Mitsubishi Corp in Tokyo.



The UN Security Council over the weekend passed 1701 which called for a truce, the withdrawal of Israeli troops from southern Lebanon after an end to the fighting and the deployment of a 15,000-strong international peacekeeping force to prevent further conflict.

Both the Israeli and the Lebanese cabinet, which includes two Hezbollah representatives, have agreed to respect the accord.