Oil prices, as tracked by the United States Oil Fund (NYSE:USO), dropped 1% on Thursday amid progress in renewed diplomatic efforts toward a Gaza cease-fire deal.

West Texas Intermediate (WTI) light crude fell to $70.7 a barrel, heading for its second straight day in the red.

U.S. and Israeli officials are set to convene in Doha in the coming days to restart discussions on a potential cease-fire in Gaza and negotiate the release of hostages held by Hamas.

The talks, confirmed by officials on Thursday, aim to bring an end to the deadly conflict that erupted on Oct. 7, 2023, when Hamas launched a major assault on southern Israel.

As reported by Reuters, David Barnea, head of Israel's Mossad intelligence agency, will travel to Qatar's capital on Sunday to meet with CIA Director William Burns and Qatar's prime minister.

According to a statement from Israeli Prime Minister Benjamin Netanyahu's office, the discussions will focus on securing the release of hostages and exploring options to initiate cease-fire negotiations.

Egypt remains a key player in these diplomatic efforts. Netanyahu acknowledged Egypt’s role in advancing discussions, following recent meetings in Cairo.

"We appreciate Egypt's willingness to help move forward with a deal on hostages and potential ceasefire initiatives," Netanyahu stated on Thursday.

Fifty-five Palestinians were killed in the last 24 hours, bringing the total death toll to over 770 since the start of Israel’s military assault on northern Gaza, according to the enclave’s civil defense agency.

Possibility Of ‘Sharp Conclusion’ In Conflict With Hezbollah

As cease-fire discussions focus on Gaza, Israel continues to manage threats from Hezbollah on its northern border with Lebanon. The Iran-backed militant group has launched attacks on northern Israel in recent weeks, raising fears of a broader conflict.

Israel’s Chief of the General Staff Herzi Halevi addressed the growing tension with Hezbollah on Thursday, indicating that Israel has the potential to decisively end the conflict.

"In the north, there's a possibility of reaching a sharp conclusion. We have thoroughly dismantled Hezbollah's senior chain of command," Halevi said in a video message.

At 3 p.m. ET in New York, the VanEck Israel ETF (NYSE:ISRA), an exchange traded fund tracking Israeli stocks, traded 0.3% higher for the day, on track to snap two sessions of declines.

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