- Oil prices fell amid reports Monday that Israel and Hamas could begin ceasefire negotiations this week.
- Secretary of State Antony Blinken said the United States would press for the two sides to reach a truce.
- The geopolitical conflict has driven up prices of oil and other commodities this year.
Oil prices fell on Monday as energy markets watched for fading geopolitical risks as Israel and Hamas move toward ceasefire talks.
On Monday morning, West Texas Intermediate fell more than 1% to $83 a barrel, while Brent crude fell about 2.3% to $87.4 following reports that Israel and Hamas could negotiate a ceasefire this week.
According to the New York Times, Israeli officials said Israel was willing to sit down with Hamas, reducing its demand for the number of hostages returned from 40 to 33. Discussions on a ceasefire could start on Tuesday if the two parties agree to meet in Cairo. , the report says.
Separately, US Secretary of State Antony Blinken said in Saudi Arabia on Monday that the United States called on Hamas to quickly accept an Israeli proposal while stepping up efforts to help the two sides reach a bilateral truce, particularly with the threat of an Israeli attack on Gaza’s southernmost town of Rafah, is booming, Reuters reported.
As conflict in the Middle East and between Russia and Ukraine rages, commodities, particularly oil, are on the rise. The World Bank said in a report this month that a resurgence in commodity prices after a two-year period of decline has increased the risk that the global economy will face inflation for much longer.
The largest group of oil-producing countries – OPEC+ – has cut production since last December, causing Brent crude prices to rise 22.9%.
Analysts say they expect the sector’s shares to rise 20% as conflicts and supply disruptions keep prices high.
Meanwhile, economic guru David Rosenberg predicts that rising geopolitical tensions will inflame energy stocks, but warns that a collapse in overall demand could put a damper on the works.
