Oil prices declined on Thursday amid diplomatic efforts to prevent the Israel-Gaza conflict from spreading.
Lingering interest-rate concerns and data showing an increase in U.S. crude inventories in the week ended October 20 also weighed on prices.
West Texas Intermediate crude oil futures were down 0.8 percent at $84.75 a barrel after climbing around 2 percent to snap a three-day losing run in the previous session.
Benchmark Brent crude futures were down 0.7 percent at $89.53.
The dollar hovered near a two-week high and Treasury yields rose, weighing on investors' appetite for riskier assets and making commodities including oil more expensive for holders of other currencies.
Meanwhile, reflecting concerns the Gaza war may spread, the Wall Street Journal reported that Israel had agreed to delay invading Gaza until U.S. air defense systems can be placed in the region.
In a televised statement, Israeli Prime Minister Benjamin Netanyahu on Wednesday said Israel is preparing a ground invasion of Gaza but didn't provide any details.
As supply concerns subside, data from U.S. Energy Information Administration (EIA) showed crude inventory increased by 1.372-million-barrel last week, as against forecast for a drop of 0.45 million barrels.
Gasoline inventory rose by 0.156 million barrels last week, as against forecast for a decline of 1.266 million barrels.
Distillate stockpiles dropped by 1.686 million barrels, slightly lower than an expected drop of 1.75 million barrels.
