Oct 10, 2025
Oil drops 1.6% following the Gaza ceasefire.
Oil prices declined on Thursday after Israel and Hamas reached a ceasefire agreement in Gaza. Brent crude futures fell by $1.03, or 1.6%, to $65.22 a barrel, while U.S. West Texas Intermediate crude dropped $1.04, or 1.7%, to $61.51.
The ceasefire, which includes the release of Israeli hostages and a partial Israeli withdrawal from Gaza in exchange for Palestinian prisoners, marks the first phase of U.S. President Donald Trump's efforts to end the conflict.
Dennis Kissler, senior vice president of trading at BOK Financial, noted, "Crude futures are in a corrective phase as the Israel/Hamas conflict looks to be ending."
Rystad Energy's Chief Economist Claudio Galimberti highlighted potential broad effects of the peace agreement on oil markets, suggesting it could lead to reduced Houthi attacks in the Red Sea and increase the chances of a nuclear deal with Iran.
On Sunday, OPEC+ decided on a smaller-than-expected output increase for November, alleviating concerns of oversupply. Oil prices had risen about 1% on Wednesday, reaching a weekly high, as stalled progress on a Ukraine peace deal suggested prolonged sanctions against Russia.
Bills from both parties to fund the U.S. government and avoid a shutdown have not gained the necessary Senate votes, which could negatively impact the economy and oil demand.
Indian Prime Minister Narendra Modi spoke with President Trump on Thursday about progress in trade negotiations, while Trump has imposed tariffs on a majority of exports from India, partly due to its continued Russian oil imports.
Additionally, the U.S. imposed sanctions on around 100 individuals and entities, including a Chinese refinery and terminal involved in Iran's oil trade, as announced by the Trump administration.
The ceasefire, which includes the release of Israeli hostages and a partial Israeli withdrawal from Gaza in exchange for Palestinian prisoners, marks the first phase of U.S. President Donald Trump's efforts to end the conflict.
Dennis Kissler, senior vice president of trading at BOK Financial, noted, "Crude futures are in a corrective phase as the Israel/Hamas conflict looks to be ending."
Rystad Energy's Chief Economist Claudio Galimberti highlighted potential broad effects of the peace agreement on oil markets, suggesting it could lead to reduced Houthi attacks in the Red Sea and increase the chances of a nuclear deal with Iran.
On Sunday, OPEC+ decided on a smaller-than-expected output increase for November, alleviating concerns of oversupply. Oil prices had risen about 1% on Wednesday, reaching a weekly high, as stalled progress on a Ukraine peace deal suggested prolonged sanctions against Russia.
Bills from both parties to fund the U.S. government and avoid a shutdown have not gained the necessary Senate votes, which could negatively impact the economy and oil demand.
Indian Prime Minister Narendra Modi spoke with President Trump on Thursday about progress in trade negotiations, while Trump has imposed tariffs on a majority of exports from India, partly due to its continued Russian oil imports.
Additionally, the U.S. imposed sanctions on around 100 individuals and entities, including a Chinese refinery and terminal involved in Iran's oil trade, as announced by the Trump administration.