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Asia eyes cheaper oil as Israel-Hamas ceasefire kindles hope for calm
Traders are watching to see if the deal will lead to safer shipping routes and renewed progress on Iran’s nuclear negotiations
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In the wake of a landmark ceasefire deal between Israel and Hamas, the world’s oil traders are watching the Middle East with a rare sense of cautious optimism, as hopes for lasting peace begin to chip away at the recent risk premium attached to global energy flows.
While analysts caution that the immediate effects on oil supply and demand may be muted, the truce is already having an effect.
Should the agreement lead to fewer attacks on Red Sea shipping lanes, renewed progress on Iran’s nuclear negotiations or a recalibration of Opec+ strategy, the market could see further easing.
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Benchmark Brent crude prices hovered near US$65 a barrel on Friday, down 0.3 per cent, after a sharper 1.6 per cent drop the previous day. West Texas Intermediate, meanwhile, traded 0.2 per cent lower at US$61.40.
Trump considers Mideast trip as Gaza deal announced
Trump considers Mideast trip as Gaza deal announced
The ceasefire agreement, announced on Thursday, is the first phase of a US-backed plan to end the Gaza conflict. Under the deal, hostilities will cease, Israel will partially withdraw from Gaza and Hamas will release all remaining hostages taken during its October 7, 2023 attacks, in exchange for hundreds of Palestinian prisoners held by Israel.
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