Oil prices rose during trading on Tuesday against the backdrop of escalating geopolitical tensions in the region, especially after Israel’s bombing of the city of Rafah in Gaza, coinciding with the continuation of negotiations on a ceasefire with Hamas without reaching an agreement.

Brent crude futures rose 23 cents, or 0.28%, to reach $83.56 per barrel, and US West Texas Intermediate crude futures rose 24 cents, or 0.31%, to reach $78.72 per barrel.

Yip Jun Rong, market strategist at IG, said that oil prices opened higher this morning with some obstacles in the ceasefire talks between Israel and Hamas, which led market traders to calculate the impact of geopolitical tensions that are likely to continue for a longer period. Pointing out that market participants are awaiting new data on US crude inventories.

A poll conducted by Reuters expected that US crude oil and product inventories fell last week, and analysts also expected average crude inventories to fall by about 1.2 million barrels in the week ending May 3rd.

Oil prices closed higher on Monday at settlement to compensate for their losses last week. Both contracts suffered their largest weekly losses in three months amid the market's focus on weak US jobs data and the potential timing of a US interest rate cut.

Oil prices received support while no end to the ongoing conflict in Gaza was announced. Investors are concerned about the regional escalation of the war and the disruption to crude oil supplies in the Middle East that it could lead to.

Saudi Arabia's move to increase official selling prices for its crude sold to Asia, northwestern Europe and the Mediterranean region in June resulted in support for prices. Which indicates expectations of strong demand this summer.

The rise of the dollar against six major currencies to 105.18 points limited the gains of oil futures because it makes crude more expensive for holders of other currencies.