New York: Oil prices experienced a decline on Thursday due to the implementation of a cease-fire agreement in the Middle East, which has eased supply concerns among investors. Additionally, a stronger US dollar, coupled with fears surrounding potential disruptions to the US Federal Reserve's efforts to combat inflation due to rising tariffs, contributed to the downward pressure on oil prices. According to Anadolu Agency, the international oil benchmark, Brent crude, dropped by 0.5% to reach $71.92 per barrel at 11.03 a.m. local time (0803 GMT). This is a decrease from the previous session's closing price of $72.32. Similarly, the US benchmark, West Texas Intermediate, fell by 0.5% to $68.26 per barrel, compared to the prior session's close of $68.60. The reduction in oil prices is attributed to the expectation that the Israeli government's ratification of a cease-fire agreement with Lebanon will reduce tensions in the region. This agreement aims to end over 14 months of conflict with the Hezbollah group fol lowing the onset of the Gaza war. In a related development, Egyptian President Abdel Fattah al-Sisi held a meeting in Cairo with Qatari Prime Minister Mohammed bin Abdulrahman Al Thani. During this meeting, both leaders expressed their desire to build upon the cease-fire agreement to achieve comprehensive peace in the region, according to a statement released by the Egyptian presidency. The discussions also covered joint efforts to establish a cease-fire in Gaza, facilitate the release of prisoners, and ensure the unconditional entry of humanitarian and relief aid into the enclave. The prospect of a lasting cease-fire in the Middle East, which is home to a substantial portion of the world's oil reserves, has contributed to the recent decline in oil prices by easing supply concerns among market participants. Another factor influencing oil prices is the statement from US President-elect Donald Trump regarding his intention to increase tariffs. This announcement has raised concerns about potential disruptions to the Federal Reserve's efforts to control inflation. Recent data indicates a likelihood that the Fed may complete its rate cuts later than initially anticipated, with a possibility of pausing interest rate reductions after December. Market pricing currently reflects a 68% probability that the Federal Reserve will reduce interest rates by 25 basis points in December. There is also a 32% probability that the policy rate will remain unchanged. The strength of the US dollar, as evidenced by a 0.25% increase in the US dollar index to 106.34, is expected to lower demand by making oil more expensive for those using foreign currencies.