Oil prices fell slightly today, Friday, after closing down 1.6% in the previous session, as market risks eased following an agreement between Israel and Hamas on the first phase of the plan to end the war in Gaza.

The English-language economic network CNBC reported that Brent crude futures dropped by 7 cents to reach $65.15 per barrel, while the US West Texas Intermediate (WTI) crude fell by 2 cents to $61.49.

On a weekly basis, the two benchmark crudes rose about 1% after a sharp decline last week.

Prices had risen about 1% the day before Wednesday to reach their highest level in a week due to stalled progress in the Ukraine peace agreement, indicating that sanctions on Russia (the world’s second-largest oil exporter) may continue.

Israel and the Palestinian Hamas movement signed a ceasefire agreement yesterday, Thursday, as the first phase of US President Donald Trump’s plan to end the war in Gaza.

Under the agreement, approved by the Israeli government today, Friday, fighting will stop, and Israel will partially withdraw from Gaza, while Hamas will release all remaining hostages captured in the attack that ignited the war, in exchange for the release of hundreds of Palestinian prisoners held by Israel.

The lower-than-expected increase in November production agreed upon by OPEC and its allies (OPEC+) eased some concerns about oversupply, while investors are worried that the ongoing US government shutdown could weaken the US economy and harm oil demand in the world’s largest crude consumer.