Ceasefire Agreement Between Israel and 'Hamas' Reduces Oil Prices

Global oil markets witnessed a decline in prices today, Thursday, following the announcement of an agreement between Israel and the Islamic resistance movement 'Hamas' to cease fire in the Gaza Strip, which calmed investors' fears of supply disruptions.

Trading data showed that Brent crude futures fell by 0.5%, settling at $65.91 per barrel. West Texas Intermediate crude also decreased by 0.6%, recording $62.61 per barrel.

The spark that ignited this downward trend was the announcement of the agreement. U.S. President Donald Trump commented on the development, stating that Israel and 'Hamas' reached a "long-awaited agreement" to cease fire in Gaza and release hostages, as part of the first phase of a plan to end the two-year-long war in the Palestinian territory.

For his part, Israeli Prime Minister Benjamin Netanyahu confirmed the step by announcing his intention to call the government to meet today, Thursday, to approve the ceasefire agreement.

This decline comes after the war in Gaza had supported oil prices over the past months, as investors had been considering the potential risks to global energy supplies in the event the conflict expanded into a broader regional confrontation.

It is noteworthy that prices had recorded an increase of about 1% on Wednesday, reaching their highest levels in a week, as investors estimated that the stalled progress in peace talks regarding Ukraine could keep sanctions imposed on Russia in place for a longer period.