By: Oil & gas Middle east

Oil prices edged lower on Thursday as news of an Israel-Hamas ceasefire plan eased geopolitical tensions in the Middle East, while a stronger U.S. dollar further pressured commodities, Reuters reported.

Brent crude futures fell 34 cents, or 0.5%, to $65.91 a barrel by 0413 GMT. U.S. West Texas Intermediate (WTI) crude dropped 38 cents, or 0.6%, to $62.17, according to Reuters data.

“WTI crude is trading on the weaker side of the pendulum today due to a reduction in geopolitical risk premium triggered by the Israel-Hamas peace deal,” said Kelvin Wong, senior market analyst at OANDA, quoted by Reuters.

U.S. President Donald Trump said Israel and Hamas had agreed to the first phase of a long-sought ceasefire and hostage release deal aimed at ending the two-year conflict in Gaza. Israeli Prime Minister Benjamin Netanyahu said he would convene the government on Thursday to approve the agreement, Reuters added.

The Gaza war has supported oil prices in recent months, as investors assessed the risk of the conflict spilling into a broader regional crisis. But analysts told Reuters that the ceasefire is unlikely to affect actual supply.