HOUSTON- Oil prices settled over $2 lower on Friday at their lowest level since mid-June as investors eyed a possible ceasefire in Gaza, while a strengthened dollar drove values down further.
Brent crude prices settled down $2.48, or 2.9 percent , to $82.63 a barrel. US West Texas Intermediate crude futures dropped $2.69, or 3.3 percent , to $80.13.
US Secretary of State Antony Blinken said a long-sought ceasefire between Israel and the Palestinian militant group Hamas was within sight.
“I believe we’re inside the 10-yard line and driving toward the goal line in getting an agreement that would produce a ceasefire, get the hostages home and put us on a better track to trying to build lasting peace and stability,” Blinken said, using a football analogy.
The war in Gaza has led investors to price in a risk premium when trading oil, as tensions threaten global supplies.
If a ceasefire is reached, the Iran-backed Houthi rebels could ease their attacks on commercial vessels in the Red Sea, since the group declared the attacks in support of Hamas.
“Geopolitics is starting to ease just a little bit so that ought to work in our favor, following the news of this ceasefire,” said Tim Snyder, chief economist at Matador Economics.
The United Nations’ highest court said Israel’s occupation of Palestinian territories and its settlements there are illegal and should be withdrawn as soon as possible, further buoying hopes of an end to the conflict.
