Oil prices rebounded on Tuesday, after suffering heavy losses in the previous session on worries about slowing crude demand.
Benchmark Brent crude futures jumped 1.7 percent to $77.41 a barrel, while WTI crude futures were up 1.7 percent at $71.96.
Crude prices slumped around 4 percent on Monday after Saudi Arabia cut oil prices sharply to Asian markets, pushing the rates to the lowest level in 27 months, amid competition from rival suppliers and concerns about waning demand.
Markets were reacting to Middle East tensions as Israel's military pushed ahead with its offensive in Gaza and said its fight against Hamas will rage through 2024.
It's feared that the conflict could grow into a regional crisis and disrupt Middle Eastern oil supplies.
U.S. Secretary of State Antony Blinken is holding talks in Israel today as he seeks a plan for Gaza's post-war future.
