Oil prices dip modestly amid Gaza ceasefire, stalled Ukraine peace talks
Oil prices dropped slightly on Oct. 9 after Israel and Hamas agreed to a ceasefire in Gaza, easing concerns about continued fighting in the region. Prices had risen just a day earlier, responding to stalled peace talks in Ukraine.
Brent crude, the international benchmark for oil, fell $1.03, or 1.6%, settling at $65.22 a barrel. U.S. West Texas Intermediate crude, which tracks oil prices in the United States, dropped $1.04, or 1.7%, to $61.51.
"Crude prices are pulling back a bit as the Israel-Hamas conflict appears to be winding down," Dennis Kissler, senior vice president of trading at BOK Financial, told Reuters.
The ceasefire agreement marks the first phase of a U.S.-brokered peace plan led by President Donald Trump.
The 20-step comprehensive plan calls for an immediate end of hostilities, Israel to pull back some troops from Gaza, and Hamas to release all remaining hostages. In return, Israel will free hundreds of Palestinian prisoners, and Gaza will receive humanitarian support, while Hamas will be excluded from the governance of the strip.
Market analysts said the ceasefire could have effects beyond Gaza. Claudio Galimberti, chief economist at Rystad Energy, called it "a major breakthrough" that might reduce attacks on shipping in the Red Sea and increase the likelihood of new nuclear talks with Iran — both of which could help stabilize oil supplies.
Prices had risen about 1% on Oct. 8 as traders reacted to stalled peace talks in Ukraine. The lack of progress suggested that sanctions on Russia — a major oil exporter — would stay in place, limiting global supply.
In Washington, the U.S. government remains shut down, with no sign of a deal to reopen it soon. A prolonged closure could slow the economy and weaken demand for oil.
Indian Prime Minister Narendra Modi said he spoke with Trump on Oct. 9 and that the two leaders reviewed progress in trade talks. The U.S. previously imposed higher tariffs on Indian exports, citing New Delhi's ongoing purchases of Russian oil.
The Trump administration also announced new sanctions on about 100 people, companies, and ships accused of helping Iran sell oil and petrochemicals, including a Chinese refinery and terminal.
