HOUSTON: Oil prices settled over $2 lower on Friday at their lowest level since mid-June as investors eyed a possible ceasefire in Gaza, while a strengthened dollar drove values down further.

Brent crude prices settled down $2.48, or 2.9%, to $82.63 a barrel. US West Texas Intermediate crude futures dropped $2.69, or 3.3%, to $80.13.

US Secretary of State Antony Blinken said a long-sought ceasefire between Israel and the Palestinian militant group Hamas was within sight.

“I believe we’re inside the 10-yard line and driving toward the goal line in getting an agreement that would produce a ceasefire, get the hostages home and put us on a better track to trying to build lasting peace and stability,” Blinken said, using a football analogy.

The war in Gaza has led investors to price in a risk premium when trading oil, as tensions threaten global supplies. If a ceasefire is reached, the Iran-backed Houthi rebels could ease their attacks on commercial vessels in the Red Sea, since the group declared the attacks in support of Hamas.

“Geopolitics is starting to ease just a little bit so that ought to work in our favor, following the news of this ceasefire,” said Tim Snyder, chief economist at Matador Economics.