Today in the Middle East, there are reports that Hammas has agreed to a cease fire with Israel. This news, although not fully verified and far from final, is breaking news. The Gaza war is raging for almost 3 weeks, and has raised oil prices.
Hammas will hold a press conference later in a few hours, in which it is expected to agree on a truce, including observers in the Rafah border crossing – one of the big disputes in the Gaza conflict.
This news from Gaza, brought oil prices down, below $35. It hasn’t been that low for a long time. Oil prices fell despite a lower than expected rise in Crude Oil Inventories in the USA. Oil inventories went up by 1.2 million barrels, under 2.1M that was expected.
But the rumors/ news from Gaza put their weight on oil prices – currently at $36.10. This already impacts related currency pairs: AUD/USD and USD/CAD.Both the Canadian and Australian dollars have lost ground to the greenback.