US West Texas Intermediate (WTI) closed $1.44, or 1.8pc, lower at $76.96, while Brent futures dropped $1.39, or 1.7pc, to conclude at $81.01 a barrel.
For the first time since early June, that was the lowest close for both Brent and WTI since June 7. It also moved both benchmarks into technically oversold territory.
US gasoline futures closed at their lowest level since June 14 and US diesel futures at their lowest level since June 7.
Over the past month, efforts in the Middle East have accelerated to bring Israel and Hamas to a ceasefire agreement under a plan presented by US President Joe Biden in May and mediated by Egypt and Qatar.Even as fighting raged in the Palestinian enclave, Israeli Prime Minister Benjamin Netanyahu told the relatives of hostages held in Gaza that a solution to guarantee their release could be nigh.
Netanyahu and Biden are scheduled to meet at the White House on Thursday.
Oil futures have benefited from the fighting in Gaza as investors have factored in the possibility of disruptions to the world’s supply of crude oil from the Middle East’s major producing regions.
