Crude oil prices fall about 2% as rally on Middle East war risk takes a pause

Crude oil futures fell about 2% on Tuesday, as the rally on geopolitical risk took a pause while the market waits for Israel to strike back against Iran.

“Oil can keep ascending only for so long purely based on perceptions and not actual supply disruption,” Tamas Varga, an analyst at oil broker PVM, said in a Tuesday note.

Oil prices have surged about 13% through Monday’s close since Iran fired 180 ballistic missiles at Israel last week, raising fears that Israel might retaliate by hitting Iran’s crude industry.

Here are Tuesday’s energy prices at around 7:39 a.m. ET:

• West Texas Intermediate November contract: $75.52 per barrel, down $1.62, or 2.1%. Year to date, U.S. crude has gained about 5%.
• Brent December contract: $79.31 per barrel, down $1.62, or 2%. Year to date, the global bench mark has risen more than 2%.
• RBOB Gasoline November contract: $2.1149 per gallon, down 1.81%. Year to date, gasoline has advanced more than 2%.
• Natural Gas November contract: $2.772 per thousand cubic feet, up 0.95%. Year to date, gas is ahead about 9%.