Oil prices fall as rally takes a pause while traders watch Middle East tensions, summer demand

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Oil prices fall as rally takes a pause while traders watch Middle East tensions, summer demand
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West Texas Intermediate and Brent are ahead by about 5% for the month.

Geopolitical tensions are also back in focus amid fears that Israel and the Iran-backed militia Hezbollah could go to war.

Oil prices hit annual highs in April as Israel and Iran teetered on the brink of war, stoking fears that a wider conflict could engulf the Middle East and disrupt crude supplies. Prices subsequently pulled back as tensions eased."Oil markets have so far been immune to the fallout of the Gaza invasion," John Evans, analyst at oil broker PVM, told clients in a note Tuesday.

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