On Monday, oil prices experienced a decline of over $1 per barrel, as tensions in the Middle East subsided following Israel’s withdrawal of additional soldiers from southern Gaza and its pledge to engage in new discussions regarding a potential ceasefire in the ongoing six-month conflict.

Brent crude futures dropped by $1.70, or 1.9%, to reach $89.47 per barrel as of 0053 GMT.

Meanwhile, U.S. West Texas Intermediate crude stood at $85.29 per barrel, reflecting a decrease of $1.62, or 1.9%.

Israel and Hamas sent teams to Egypt for fresh talks on a potential ceasefire ahead of the Eid holidays, easing tensions in the Middle East that drove up oil prices by more than 4% last week on concerns of supply disruption, CNBC reported.

Saudi Arabia, the leading oil exporter globally, increased the official selling prices for all crude grades to Asia in May, as anticipated, following a tightening of heavy oil supply.

Written by B.C. Begley