HOUSTON: Oil futures fell on Monday on a report the US and Venezuela could soon reach a deal to ease sanctions on Venezuela if a presidential election date is set, while traders see the Israel-Hamas conflict not affecting crude supplies in the short term.

Brent futures were down 59 cents, or 0.67%, at $90.27 a barrel at 10:30 CDT (1532 GMT). US West Texas Intermediate (WTI) crude fell by 0.29 cents, or 0.37%, to $87.30 a barrel.

The US and Venezuelan governments were getting ready to sign a pact in Barbados as early as on Tuesday to ease US sanctions on Venezuela’s oil industry in return for a competitive, monitored presidential election in Venezuela next year, according to media reports.

Easing sanctions on Venezuela’s oil industry could result in increased oil supply.

Traders were optimistic the war between Israel and Palestinian Hamas would remain confined to Gaza. “It’s more of the same on Monday in terms of the conflict in the Middle East being contained from affecting crude oil supplies,” said John Kilduff, partner with Again Capital LLC.

Both oil benchmarks had climbed nearly 6% on Friday, taking Brent 7.5% higher on the week and WTI up 5.9%. Israeli air strikes on Gaza intensified on Monday, after diplomatic efforts to arrange a ceasefire in southern Gaza failed.

The White House said it hopes the Rafah crossing at the Gaza-Egypt border could open for a few hours on Monday to allow some people to leave ahead of Israel’s suspected ground offensive.

US Secretary of State Antony Blinken returned to Israel on Monday, where he discussed humanitarian aid with Israeli Prime Minister Benjamin Netanyahu. Russia has also entered the diplomatic fray, with President Vladimir Putin set to hold talks with Iran, Israel, Palestinians, Syria and Egypt.