Oil prices rose on Tuesday, after rising more than four percent in the previous session, with markets assessing the possibility of supply disruptions as the escalation in Gaza continues.
Although Israel produces very small amounts of crude oil, markets are concerned that if the conflict escalates, it could hurt Middle East supplies and worsen the deficit expected for the rest of the year.
Sources said on Monday that the Israeli port of Ashkelon and its oil terminal were closed following the conflict.
Analysts said that the unrest may also push the United States to tighten its sanctions on Iran and harm exports
A White House spokesman said on Monday that Iran was involved even though the United States had no intelligence or evidence indicating Iran's direct participation in the attacks.
In a more positive sign for supplies, sources said that Venezuela and the United States have made progress in talks that could lead to easing sanctions on Caracas, by allowing at least one additional foreign oil company to obtain Venezuelan crude oil under some conditions.
Price movements
By 4:38 GMT, Brent crude fell 46 cents, or 0.53 percent, to $87.68 per barrel, while US West Texas Intermediate crude fell 52 cents, or 0.61 percent, to $85.86 per barrel.
The two benchmarks gained more than $3.50 on Monday, due to news of the conflict, after falling sharply in volatile trading last week.
