Oil declined on hopes that the US and Iran are inching closer to a peace deal after a conditional ceasefire between Israel and Lebanon, even as the truce was marred by ongoing clashes. West Texas Intermediate futures fell more than 3% to settle above $93 a barrel, snapping three days of gains. The ceasefire between Israel and Lebanon announced Wednesday could meet one of Tehran's key bargaining conditions, easing the way to a pact between the US and Iran.