Oil prices slid more than $1 on Monday as diplomatic efforts grew over the weekend to contain the conflict between Israel and the Palestinian Islamist group Hamas, although Gaza continued to be bombarded.
Brent crude futures fell 79 cents to $91.37 a barrel, as of 0410 GMT, having lost $1.02 to $91.14 a barrel earlier in the session. U.S. West Texas Intermediate crude futures were down 91 cents at $87.17 a barrel, after sliding $1.72 to $87.03 a barrel earlier on Monday.
The contracts had risen more than 1% last week for a second consecutive weekly jump on fear of potential supply disruption if the Israel-Hamas war grows into a wider confrontation in the Middle East, the world’s biggest oil-supplying region.
Aid convoys started to arrive in the Gaza Strip from Egypt over the weekend, as Arab leaders and foreign ministers gathered for a summit in Cairo which was unable to yield a joint statement.
“There is some relief in the oil market that Israel is holding off on a planned ground incursion of northern Gaza to negotiate a release of hostages, which opens up a window for diplomacy,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
