Oil prices declined in early trading on Thursday after Israel and Palestinian militant group Hamas agreed on the first phase of a plan to end the war in Gaza, reducing the conflict risk premium and prompting investors to sell.

Brent crude futures fell 51 cents, or 0.77%, to $65.74 a barrel by 00:02 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 55 cents, or 0.88%, to $62 a barrel.

The ongoing conflict in Gaza had previously supported oil prices, as investors factored in potential risks to global oil supplies if the war escalated into a wider regional confrontation.