Oil prices took a dip on Thursday, as renewed diplomatic efforts towards a Gaza cease-fire deal showed progress. The United States Oil Fund (USO), which tracks oil prices, saw a 1% drop. West Texas Intermediate (WTI) light crude also fell to $70.7 a barrel, marking its second consecutive day of decline.
This dip in oil prices comes as U.S. and Israeli officials are set to meet in Doha in the coming days to restart discussions on a potential cease-fire in Gaza. The primary focus of these talks, confirmed by officials on Thursday, is to bring an end to the deadly conflict that erupted on October 7, 2023, when Hamas launched a major assault on southern Israel.
The discussions aim to negotiate the release of hostages held by Hamas. As reported by Reuters, David Barnea, head of Israel’s Mossad intelligence agency, will travel to Qatar’s capital on Sunday to meet with CIA Director William Burns and Qatar’s prime minister. A statement from Israeli Prime Minister Benjamin Netanyahu’s office confirmed that the talks will focus on securing the release of hostages and exploring options to initiate cease-fire negotiations.
Egypt, a key player in these diplomatic efforts, continues to advance discussions following recent meetings in Cairo. “We appreciate Egypt’s willingness to help move forward with a deal on hostages and potential ceasefire initiatives,” Netanyahu stated on Thursday.
While efforts continue to find a peaceful resolution to the conflict in Gaza, Israel faces a growing threat on its northern border with Hezbollah. The Iran-backed militant group has launched attacks on northern Israel in recent weeks, raising fears of a broader conflict.
Addressing the increasing tension with Hezbollah on Thursday, Israel’s Chief of the General Staff Herzi Halevi, indicated that Israel has the potential to decisively end the conflict. “In the north, there’s a possibility of reaching a sharp conclusion. We have thoroughly dismantled Hezbollah’s senior chain of command,” Halevi said in a video message.
At 3 p.m. ET in New York, the VanEck Israel ETF (ISRA), an exchange-traded fund tracking Israeli stocks, traded 0.3% higher for the day, snapping two sessions of declines.