Oil Prices Dip on Ceasefire Hopes in Gaza and US Economic Uncertainty

NEW YORK—Oil prices saw a decline on Monday, influenced by the prospects of a ceasefire in the Middle East and uncertainties concerning the US Federal Reserve’s plans for interest rate adjustments. International benchmark Brent crude dropped to USD 87.45 per barrel, while the American benchmark West Texas Intermediate fell to USD 83.11 per barrel, both reflecting declines from the previous trading session.

According to Philippines News Agency, the likelihood of a ceasefire increased with US Secretary of State Antony Blinken’s arrival in Saudi Arabia to discuss potential agreements in Gaza. His discussions are expected to focus on securing the release of hostages and navigating the complex political dynamics involving Hamas. Blinken’s visit also aims to address the broader goals of establishing an independent Palestinian state and ensuring regional peace and stability, which could prevent further conflicts and enhance humanitarian efforts in Gaza.

Additionally, market sentiments were affected by ongoing uncertainty over when the US Federal Reserve might begin to cut interest rates. Despite anticipations for a rate cut in the fourth quarter, recent data suggests otherwise, continuing to influence global financial markets and commodity prices, including oil.