Crude oil futures ended lower on Tuesday as traders assessed the likely impact of potential supply disruptions due to the ongoing war in the Middle East. The current developments in Israel don't pose an immediate threat to oil supply as the country produces very little crude oil. Still, it is feared that the sanctions on Iran and subsequent disruptions to Iran's oil supply would have more of an impact on oil markets, if the conflict is protracted in duration.
Benchmark crude oil futures for November delivery fell $0.41 or about 0.5 percent to settle at $85.97 a barrel on the New York Mercantile Exchange. Brent crude for December delivery dropped $0.50 or about 0.6 percent to settle at $87.81 a barrel on London's Intercontinental Exchange.