Oil Prices Fall as Hamas, Israel Inch Near Ceasefire Deal
Oil prices fell Friday after Israel and Hamas reached the first phase of a US-brokered ceasefire in Gaza, easing geopolitical tensions that had supported prices in recent months.
Brent crude was trading at $64.66 per barrel at 09.42 a.m. local time (0642 GMT), down 0.5% from the previous close of $64.99. US benchmark West Texas Intermediate (WTI) decreased by 0.5% to $60.82 from $61.16 in the prior session.
The cease-fire, confirmed late Thursday, includes Israeli troop withdrawals, the reopening of the Rafah border crossing, the entry of humanitarian aid into Gaza, and the release of hundreds of Palestinian prisoners.
Hamas said that it has received guarantees from the mediators and the US that the Israeli war in the Gaza Strip has “fully ended.” In a pre-recorded speech, Hamas leader Khalil al-Hayya announced a ceasefire agreement with Israel.
“We have received guarantees from our brothers the mediators and the US administration, all confirming that the war has ended completely,” al-Hayya said.
Analysts said the truce reduced fears of supply disruptions. “This presents a major step toward ending the two-year war that raised the risk of supply disruptions in the oil market,” Daniel Hynes, a senior commodity strategist at the Australia and New Zealand Banking Group, said in a note.
“This saw the focus move back to the impending oil surplus, as OPEC proceeds with the unwinding of production cuts,” Hynes added.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, tempered recent price gains by confirming a planned production increase for November.
Eight member countries agreed to raise output by 137,000 barrels per day, easing supply concerns and adding downward pressure on prices. The group’s next meeting is scheduled for Nov. 2.
Losses were capped, however, after the US imposed sanctions on more than 90 individuals, entities and vessels accused of facilitating Iran’s petroleum and petrochemical exports through the UAE, India, China, Hong Kong and Singapore.
The Treasury Department announced that it has designated more than 50 individuals involved in facilitating billions of dollars’ worth of Iranian oil and liquefied petroleum gas (LPG) exports.
Targets included networks based in the five Asian hubs, nearly two dozen “shadow fleet” vessels, a China-based crude oil terminal, and an independent refinery, “key to Iran’s ability to export petroleum and petroleum products.”
The State Department separately sanctioned approximately 40 additional individuals, entities, and vessels linked to Iran’s energy trade, including top buyers of Iranian petrochemicals and operators of a shadow fleet of tankers. Nigeria Launches Digital Badge to Build Trust in Online E-Commerce
US Sanctions Iran’s Oil Export Network
The US on Thursday announced new sanctions targeting more than 90 individuals, entities, and vessels involved in allegedly facilitating Iran’s petroleum and petrochemical exports, in what officials described as an effort to choke off Tehran’s revenue from oil sales.
The Treasury Department said it designated over 50 actors enabling billions of dollars’ worth of Iranian oil and liquefied petroleum gas (LPG) exports, including networks based in the United Arab Emirates, India, China, Hong Kong and Singapore.
The action also targeted nearly two dozen “shadow fleet” vessels, a China-based crude oil terminal and an independent refinery that the Treasury Department said were “key to Iran’s ability to export petroleum and petroleum products.”
“Treasury is degrading Iran’s cash flow by dismantling key elements of Iran’s energy export machine,” Treasury Secretary Scott Bessent said in a statement, adding that the move aims to disrupt Tehran’s funding of groups that threaten the US and its allies.
Separately, the State Department sanctioned about 40 individuals, entities, and vessels linked to Iran’s energy trade, including top buyers of Iranian petrochemicals and operators of shadow fleet vessels.
