New York - The price of oil rose on Wednesday afternoon following the announcement of a ceasefire agreement to end a week of fighting between Israel and Hamas militants.

Benchmark oil rose 33 cents to $87.08 a barrel in New York. It climbed as high as $87.89 in the morning. Oil fell nearly three percent on Tuesday.

The truce was announced by Egypt's foreign minister and confirmed by Israeli Prime Minister Benjamin Netanyahu. The deal is to end a week of fighting that has killed more than 140 Palestinians and five Israelis.

Brent crude, used to price international varieties of oil, rose 40 cents to $110.23 a barrel in London. - Sapa-AP