Oil prices fell on Tuesday following renewed hopes for a cease-fire. This optimism came after US Secretary of State Antony Blinken announced that Israeli Prime Minister Benjamin Netanyahu had accepted a new proposal.
At 10:24 a.m. local time (0705 GMT), Brent crude, the international benchmark, was priced at $77.05 per barrel, down 0.79% from the previous session’s close of $77.66. Meanwhile, US benchmark West Texas Intermediate (WTI) fell by 0.81% to $73.06 per barrel, from $73.66 in the prior session.
Positive news about cease-fire talks in the Middle East, home to most global oil reserves, has eased supply concerns and contributed to the drop in oil prices.
On Monday, Blinken, who arrived in Israel on Sunday to push for a cease-fire, stated that Netanyahu had accepted a new “bridging proposal” for a Gaza cease-fire and prisoner swap.
Hamas acknowledged that the proposal met Netanyahu’s conditions, particularly his demand against a permanent cease-fire and a complete withdrawal from Gaza.
Last week, the US, Egypt, and Qatar held cease-fire talks in Doha. They presented a proposal to Israel and Hamas aimed at closing the remaining gaps to enable a swift implementation of the deal.
Blinken noted that the next step is for Hamas and Israel to work together under the mediation of the US, Egypt, and Qatar to finalize the implementation of the agreement.
Officials are scheduled to meet in Cairo this week for further negotiations, as announced by the White House on Monday.
Additionally, concerns over a slowdown in China’s economy, the world’s largest oil importer, are contributing to the decline in oil prices. Data indicating weaker economic performance in China has raised fears of reduced demand for oil.