Brent declines as Israel and Hamas secure a ceasefire deal

The front-month ICE Brent contract has dropped by $1.60/bbl on the day, to trade at $64.82/bbl at 09.00 GMT.

IMAGE: An oil pump jack pictured at dusk. Getty Images

Upward pressure:

Washington has announced a fresh sanctions package against Iran, putting some upward pressure on Brent crude.

The US Treasury Department has sanctioned more than 50 individuals, entities and vessels for facilitating Iranian oil and liquified petroleum gas (LPG) sales and shipments.

“[Oil’s] losses were limited after the US announced further sanctions on Iran,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

Brent crude’s price has plunged following US President Donald Trump’s latest announcement that Israel and Hamas have reached a ceasefire deal and have agreed to the release of the remaining Israeli hostages, according to media reports.

“This means that all of the hostages will be released very soon, and Israel will withdraw their troops to an agreed upon line as the first steps toward a strong, durable, and everlasting peace,” Trump wrote on social media platform Truth Social.

The long-anticipated deal comes as part of a broader plan to end the conflict in Gaza, now in its second year.

“This presents a major step toward ending the two-year war that raised the risk of supply disruptions in the oil market,” Hynes added.

By Aparupa Mazumder

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