Oil prices saw slight changes in early Asian trading on Friday after falling more than one percent in the previous session following the fading of the war risk premium in the market after Israel and the Palestinian Islamic Resistance Movement (Hamas) agreed on the first phase of a plan to end the war in Gaza.

Brent crude futures rose nine cents or 0.1 percent to $65.31 a barrel by 0044 GMT. U.S. West Texas Intermediate crude climbed 12 cents or 0.2 percent to $61.63 a barrel.

Israel and Hamas signed a ceasefire agreement on Thursday as part of the first phase of an initiative proposed by U.S. President Donald Trump to end the war in Gaza.

Under the agreement, approved by the Israeli government on Friday, fighting will stop, Israel will partially withdraw from Gaza, and Hamas will release all remaining hostages in exchange for hundreds of detainees held by Israel.

Prices had reached their highest levels in a week after gains of about one percent on Wednesday due to stalled progress on a peace agreement for Ukraine, which means sanctions on Russia, the world’s second-largest oil exporter, may continue.

On a weekly basis, crude prices remain up about 1.2 percent after a sharp drop last week.

Daniel Hines, an analyst at ANZ, said in a Friday note that the Gaza ceasefire agreement represents a significant step towards ending the two-year war that increased the likelihood of oil supply disruptions.

He added, “This (agreement) refocuses attention on the imminent oil surplus as OPEC moves forward with ending production cuts.”

Investors also fear that a prolonged U.S. government shutdown could weaken the U.S. economy and damage oil demand.