New york: Oil prices fell in early trade Thursday after US President Donald Trump announced that Israel and Hamas agreed to the first phase of a plan to end the war in Gaza. Brent crude futures were down 51 cents, or 0.77%, at $65.74 a barrel. US West Texas Intermediate crude fell 55 cents, or 0.88%, to $62.

According to Qatar News Agency, the announcement of the agreement brought a notable shift in the energy market. The prospect of easing tensions in the region, a significant oil-producing area, has influenced traders’ expectations, leading to a decrease in crude prices.

The proposed plan to end the conflict in Gaza has created a sense of cautious optimism among investors, affecting global oil price dynamics. The initial phase of the agreement, as outlined by President Trump, marks a potential de-escalation in a volatile region, which could contribute to a more stable environment for oil production and distribution in the future.