Oil prices saw slight changes in early Asian trading on Friday after falling more than 1% in the previous session due to the fading war risk premium in the market following Israel and the Palestinian resistance movement Hamas agreeing on the first phase of a plan to end the war in Gaza.

Brent crude futures rose nine cents or 0.1% to $65.31 per barrel by 00:44 GMT. U.S. West Texas Intermediate crude increased 12 cents or 0.2% to $61.63 per 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, according to Reuters.

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 taken during the attack that sparked the war in exchange for hundreds of detainees held by Israel.

Prices had reached their highest levels in a week after gains of about 1% on Wednesday due to stalled progress on a peace deal for Ukraine, meaning sanctions on Russia, the world’s second-largest oil exporter, may continue.

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

Daniel Hines, an analyst at ANZ, said in a note on Friday that the Gaza ceasefire agreement represents a major step toward ending the two-year-long 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.