Oil prices slip as Israel-Hamas ceasefire deal eases war premium

October 09, 2025 (MLN): Oil prices declined in early Thursday trading after Israel and Hamas reached an agreement on the initial phase of a plan to end the Gaza conflict, easing the war-related risk premium and prompting investors to sell.

Brent crude futures decreased by $0.26, or 0.39%, to $65.99 per barrel. 

West Texas Intermediate (WTI) crude futures fell by $0.30, or 0.48%, to $62.25 per barrel by [10:35pm] PST.

U.S. President Donald Trump decleared that Israel and Hamas had reached a long-anticipated agreement for a ceasefire in Gaza and the release of hostages, as part of a broader plan to end the two year conflict in the Palestinian territory.

Israeli Prime Minister Benjamin Netanyahu stated that he would convene his cabinet on Thursday to approve the ceasefire deal.

The Gaza war had been a key factor supporting oil prices in recent months, as investors remained wary of potential disruptions to global oil supplies should the conflict escalate into a broader regional confrontation.

On Wednesday, oil prices rose by about 1% to hit a one-week high after traders interpreted the lack of progress in peace talks over Ukraine as a sign that sanctions on Russia would likely remain in place.

Separately, data from the U.S. Energy Information Administration showed that total weekly petroleum products supplied a measure of domestic oil demand climbed to 21.99 million barrels per day last week, the highest level since December 2022.

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