Talks of a possible ceasefire in Gaza pushes Brent lower
Brent futures have shed some previous gains following speculations regarding a potential ceasefire agreement between Israel and Hamas.
PHOTO: The UN headquarters in Geneva with the flags of the member countries. Getty Images
The US has submitted a draft resolution to the United Nations Security Council (UNSC), calling for an immediate ceasefire in the Gaza Strip. This news has capped Brent’s price gains, as a potential halt to the conflict in the Middle East could ease supply concerns in the global oil market.
Additionally, it could also encourage Iran-aligned Houthi militia to stand down its ongoing militant activities in the Red Sea and allow normal vessel movement through the Suez Canal, the Gulf of Aden, and the Bab al-Mandeb Strait.
Brent futures traded lower after the US draft resolution “triggered a bull market squeeze,” SPI Asset Management’s managing partner Stephen Innes said. "A ceasefire would help calm fears that the situation in Gaza might spread more broadly across the region," said IG Bank’s analyst Tony Sycamore.
The US Secretary of State Antony Blinken said earlier today that the ongoing ceasefire talks in Qatar could reach an agreement soon. “The gaps are narrowing” in ongoing negotiations in Doha, Blinken said.
Meanwhile, Israel’s Prime Minister Benjamin Netanyahu's office said the country’s spy chief David Barnea would travel to Qatar on Friday to meet mediators, Reuters reported.
By Aparupa Mazumder
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