Oil prices slipped as traders weighed easing tensions in the Middle East amid a more cautious stance across global markets.

West Texas Intermediate dropped 1.7%, settling below $62 per barrel, while Brent crude closed near $65.

Israel has started enforcing a ceasefire in Gaza after reaching an agreement with Hamas to release all hostages it holds—a significant move toward ending the two-year conflict that has cast a shadow over supply from the Middle East, which accounts for about one-third of the world’s crude production.