London, October 9(HS): Global oil prices fell in early Thursday trading after Israel and Hamas reached an agreement on the first phase of a long-awaited Gaza ceasefire, lowering the conflict-related “war risk premium” that had buoyed crude markets in recent months.Brent crude futures dropped 51 cents, or 0.77%, to trade at $65.74 a barrel by 0002 GMT, while US West Texas Intermediate slid 55 cents, or 0.88%, to $62.

The downward movement followed US President Donald Trump’s announcement that both sides had agreed to a plan encompassing a ceasefire and a hostage release, aimed at ending the two-year-long Gaza war.

Israeli Prime Minister Benjamin Netanyahu said his government would meet on Thursday to formally approve the deal. The Gaza war has been a key factor supporting oil prices this year, as traders weighed the potential for escalation into a wider regional confrontation that could threaten global supplies.

Prices had risen about 1% on Wednesday to a one-week high, partly driven by stagnant progress in Ukraine peace talks, which helped sustain sanctions pressure on Russian energy exports.

Meanwhile, US Energy Information Administration data showed domestic petroleum product demand — a proxy for oil consumption — surged last week to 21.99 million barrels per day, the highest level since December 2022, offering some counterbalance to Middle East-related price declines.

Analysts say the ceasefire agreement could reduce geopolitical risk premiums in energy markets if it holds, though broader supply and demand fundamentals will continue to steer price trends in the weeks ahead.

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Hindusthan Samachar / Jun Sarkar