Brent crude oil futures fell over 3% to around $63 a barrel on Friday, the lowest since May 30, as easing Middle East tensions and a looming global supply surplus weighed on the market. Israel approved a framework for Hamas to release hostages in exchange for prisoners, marking a major step toward a peace deal in Gaza, a region that produces about a third of the world’s crude. Meanwhile, markets anticipate a supply surplus driven by rising output both within and outside OPEC+, which recently increased production quotas to reclaim market share. Additionally, President Donald Trump’s threat of a “massive increase” in tariffs on Chinese goods rekindled trade war concerns. Prices were partially supported by US sanctions on a crude-import terminal and a private Chinese refinery involved in Iranian oil trade, while China retaliated by imposing port fees on American ships, potentially boosting freight costs.