Oil prices rose on Tuesday after falling more than $2 a barrel in the previous session as investors took stock of a potential ceasefire between Israel and Lebanon's Hezbollah, which had weighed on oil's risk premium.

Oil prices fell more than $2 a barrel on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict, citing unnamed senior U.S. officials.

A ceasefire between Israel and Lebanon’s Hezbollah militants began early Wednesday morning, after Beirut residents endured the most intense day of Israeli strikes since the war began. Many wondered if the agreement to stop fighting would hold.