Brent crude futures slipped 10 cents, or 0.1 per cent, to $80.59 a barrel by 1057 GMT. U.S. West Texas Intermediate crude futures were down 19 cents, or 0.2 per cent, to $78.16 per barrel.
After hitting a seven-month low of $76.30 at the beginning of last week, Brent rose more than 3 per cent on Monday to cap a five-day run of gains, closing at $82.30 a barrel.
"The recent rally in crude came to a halt yesterday with prices falling back as fears of a retaliatory attack on Israel by Iran receded, with the risk premium slashed," said Ashley Kelty, an analyst at Panmure Liberum.
Iran had vowed a severe response to the killing of the leader of Hamas late last month. Three senior Iranian officials have said that only a ceasefire deal in Gaza would hold Iran back from direct retaliation against Israel for the assassination.
Israel has neither confirmed nor denied its involvement but it is fighting in Gaza against Hamas after the group attacked Israel in October. To counter Iran, the United States Navy has deployed warships and a submarine to the Middle East.
"The extent of Iran's reprisal, as well as Israel's response, will likely determine whether the current conflict in the Middle East broadens into a regional conflict," said Vivek Dhar, an analyst at Commonwealth Bank of Australia.
Also hindering oil price gains, the International Energy Agency trimmed on Tuesday its 2025 estimate for oil demand growth, citing the impact of a weakened Chinese economy on consumption. That came after OPEC cut expected demand for 2024 for similar reasons.
Brent oil holds above $80 as fears over Middle East ease
FE Team | Published: August 14, 2024 22:35:34
Brent oil holds above $80 as fears over Middle East ease
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