Oil prices rose in early Asian trading after hopes faded that negotiations would lead to a ceasefire in Gaza and ease tensions in the Middle East.
Brent crude futures rose 40 cents to $90.78 a barrel, while U.S. West Texas Intermediate crude rose 35 cents to $86.78.
Brent suffered its first loss in five sessions, and West Texas Intermediate fell for the first time in seven sessions.
Geopolitical factors
Israeli Prime Minister Benjamin Netanyahu said on Monday that an unspecified date had been set for an Israeli invasion of Rafah, which AG Markets analyst Tony Sycamore wrote in a note ended hopes that briefly prevailed in the market yesterday that geopolitical tensions in the region might ease.
The market continues to assess the potential for oil supply disruptions, with analysts at ANZ saying in a note to clients that Iran's response to a suspected Israeli attack on its consulate in Syria could leave the oil market vulnerable to the conflict, having been largely unaffected since Hamas's attack on Israel.
Tehran vowed revenge last week after the airstrike in Damascus, although Israel has not claimed responsibility for the attack.
