Oil prices fall on renewed Israel-Hamas cease-fire hopes

By Zeynep Beyza Kilic

Oil prices fell on Tuesday amid renewed hopes for a cease-fire between Israel and Hamas following US Secretary of State Antony Blinken's announcement that Israeli Prime Minister Benjamin Netanyahu had accepted a new cease-fire proposal.

Brent crude, the international benchmark, fell to $77.05 per barrel at 10:24 a.m. local time (0705 GMT), down 0.79% from the previous session's close of $77.66. US benchmark West Texas Intermediate (WTI) dropped 0.81% to $73.06 per barrel, following a close of $73.66 in the prior session.

Positive news regarding the cease-fire negotiations in the Middle East, a key region for global oil reserves, has eased supply concerns and contributed to the drop in oil prices.

On Monday, Blinken, who arrived in Israel on Sunday evening to facilitate cease-fire efforts, stated that Netanyahu had accepted a new "bridging proposal" for a Gaza cease-fire and prisoner swap deal.

While Hamas indicated that the proposal meets Netanyahu's conditions, including his refusal for a permanent cease-fire and complete withdrawal from Gaza, the US, Egypt, and Qatar have been working to narrow the remaining gaps in the proposal for swift implementation.

Negotiations are set to continue in Cairo this week, as announced by the White House on Monday.

Additionally, concerns over a slowdown in China's economy, the world's largest oil importer, are also contributing to the decline in oil prices, raising worries about reduced demand.