Oil drops on Israel-Hamas ceasefire

<p>The parameters of an Israel-Gaza ceasefire aren't yet but the oil market isn't waiting for confirmation. </p><p>WTI has fallen to $74.28 from $76.74 before the headlines. That's wiped out the late-January gains.</p><p>The drop in oil isn't so much about Gaza and Israel; it's more about the violence that has been set off as a result. Houthis in Yemen launched Red Sea ship attacks in response to the fighting in Gaza while militant groups throughout the Middle East attacked US bases as a result of the fighting. </p><p>Today a report from the White House said that it's preparing to strike in Syria and Iraq in response to the US soldiers killed on the weekend. Notably, Iran was left out.</p><p>With that and a ceasefire, the risk of a broader war in the region and disruptions to oil supply and shipments have declined.</p>

This article was written by Adam Button at www.forexlive.com.