Oil falls over 1.5% as geopolitical outlook weighed

Oil drilling rigs

Oil prices declined on Thursday, pressured by the ceasefire agreement between Hamas and Israel in Gaza despite continued concerns over rising geopolitical tensions in Eastern Europe.

December Brent crude futures fell 1.55%, or $1.03, to settle at $65.22 per barrel, while November WTI crude dropped 1.66%, or $1.04, to $61.51 per barrel.

The Middle East risk premium eased after the ceasefire deal between Israel and Hamas, which ended a two-year conflict in Gaza that had threatened to expand across a region responsible for a significant portion of global oil trade.

However, renewed concerns emerged over the potential collapse of US mediation efforts between Moscow and Kyiv, as Russian aircraft and drones reportedly violated the airspace of several NATO member states, according to the Financial Times.

The NATO is now considering a military response to these incursions, including measures such as loosening engagement rules for confronting Russian aircraft and drones.