Despite investors’ ongoing consideration of the possible effects of the intensifying Israel-Hamas war on oil prices, oil futures dipped on Monday after news that the U.S. had reached an agreement to relax sanctions against Venezuela.

At 1434 GMT, Brent futures were down $1.08, or 1.19%, at $89.81 per barrel. WTI crude for the United States dropped by $1.07, or 1.22%, to $86.62 a barrel.

The Washington Post claimed that the U.S. and Venezuelan governments reached an agreement on Monday to relax U.S. sanctions on Venezuela’s oil industry in exchange for a free and fair presidential election in Venezuela the next year.

Oil supplies may rise if sanctions on Venezuela’s oil sector are relaxed. However, investors continue to consider the major geopolitical risks that the Israel-Hamas conflict poses to the oil markets, as well as the possibility of increased oil prices as a result.

Both oil benchmarks increased by about 6% on Friday, with WTI rising 5.9% and Brent increasing by 7.5% week over week.

Following the failure of diplomatic efforts to broker a truce in southern Gaza, Israeli airstrikes on Gaza increased on Monday.

The Rafah gate at the Gaza-Egypt border may open for a short period of time on Monday, the White House said, to allow some people to evacuate before of Israel’s alleged ground invasion. On Monday, U.S. Secretary of State Antony Blinken visited Israel again and spoke with Israeli Prime Minister Benjamin Netanyahu about humanitarian help.

With President Vladimir Putin scheduled to have discussions with Iran, Israel, the Palestinians, Syria, and Egypt, Russia has also joined the diplomatic fight.

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