Oil slumped on Tuesday aid the unclear picture of the global demand projections, pushing the crude futures contracts to decline, while there is a risk premium associated with the Israel-Hamas war.

Brent crude slipped 0.26% to $83.34 per barrel, while US WTI dropped 0.33% to $78.20 per barrel.

A cease-fire between Israel and Hamas in Gaza is being pushed for by a number of nations as the possibility of an Israeli attack on Rafah grows. According to the U.N., an attack "could lead to a slaughter".

As the Middle East crisis rages and the oil markets become more unstable, shipping has suffered. The Houthis, who are affiliated with Iran, have escalated their attacks on maritime lines in the Red Sea and Bab al-Mandab Strait in support of the Palestinian people. Since Friday, at least four more vessels have been targeted by drone and missile strikes.

The Middle East crisis, which is occurring in one of the world's main oil-producing regions, hasn't, however, allayed investors' concerns about declining global demand for crude.

The growth estimate for oil demand in 2024 was cut downward by the pessimistic International Energy Agency (IEA) report last week, to about a million barrels per day less than the producer club OPEC's prediction.