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Crude Oil Prices Drop Amid Investor Uncertainty as Iran, Israel Stop Attacks

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Crude oil prices declined on Tuesday following news that Iran and Israel have paused attacks, but risks remain that hostilities would resume at any time.

Brent crude at last look lost 2.1% to US$92.24/barrel and West Texas Intermediate crude fell 2.5% to $88.98/barrel. This comes after oil prices rose due to renewed Israeli strikes on Iran and attacks in Lebanon over the weekend.

Analysts warned that this halt in hostilities could be short-lived as it had been in previous times since the war began, Reuters said in a Tuesday report.

"In the meantime, global oil inventories keep depleting and as data, whether weekly or monthly, becomes available, realization of dangerously low oil stockpiles worldwide could intensify the race for available barrels pushing Brent back above $100 once again," Reuters quoted PVM Oil Associates analyst Tamas Varga as saying.

Most shipping through the Strait of Hormuz continues to be blocked, with the U.S. imposing its own blockade of Iranian ports, the report said.

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