U.S. West Texas Intermediate crude was down $2.15, or 3.45%, to $59.40
Oil prices fall as risk premium fades after Gaza deal
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Brent and U.S. crude futures fell more than $2 a barrel, or over 3%, on Friday as confidence grew the Gaza peace agreement between Israel and Hamas was taking hold.
Brent crude futures were down $2.16, or 3.31%, at $63.06 a barrel at 10:37 a.m. CDT (1537 GMT), the lowest since early June.
U.S. West Texas Intermediate crude was down $2.15, or 3.45%, to $59.40, the lowest since early May.
"President Trump’s ceasefire announcement immediately took the premium out of the price of oil, not only because of Israel and Hamas but also the reduction of a risk that Iranian proxies would continue to attack oil vessels in the Red Sea and other places," said Phil Flynn, senior analyst with the Price Futures Group.
Israel and the Palestinian militant group Hamas signed a ceasefire agreement on Thursday in the first phase of U.S. President Donald Trump's to end the war in Gaza.
Under the deal, which Israel's government ratified on Friday, fighting will cease, Israel will partially withdraw from Gaza, and Hamas will free all remaining hostages it captured in the attack that precipitated the war, in exchange for hundreds of prisoners held by Israel.
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