- China's sluggish economy is overshadowing escalating tensions in the Middle East.
- Israel is expected to retaliate against the Iran-backed militia Hezbollah, after a rocket fired from Lebanon killed 12 children.
U.S. crude oil futures on Tuesday fell to their lowest levels since early June as worries about China's economy overshadow a new round of escalation in the Middle East.
"Macroeconomic considerations keep shaping investors' sentiment and oil slid through technical supports like a hot knife through butter," Tamas Varga, analyst at oil broker PVM, wrote in a Tuesday note.
"Chinese economic turmoil, including sluggish growth and falling crude oil imports, is still a major driving force for our market," Varga said.
Get top local stories in Southern California delivered to you every morning. Sign up for NBC LA's News Headlines newsletter.
Here are Tuesday's closing energy prices:
- West Texas Intermediate September contract: $74.73 per barrel, down $1.08, or 1.42%. Year to date, U.S. crude oil has gained 4.3%.
- Brent September contract: $78.63 per barrel, down $1.15, or 1.44%. Year to date, the global benchmark has climbed 2%.
- RBOB Gasoline August contract: $2.38 per gallon, down nearly 3 cents, or 1.17%. Year to date, gasoline has gained 13.5%.
- Natural Gas September contract: $2.12 per thousand cubic feet, up 9 cents, or 4.42%. Year to date, gas is down 15.4%.
In the Middle East, meanwhile, tensions have escalated between Israel and the Iran-backed militia Hezbollah, after a rocket fired from Lebanon killed 12 children in the Israeli-occupied Golan Heights.
Money Report
Israel's military responded on Tuesday with an airstrike in a suburb of southern Beirut, targeting a commander they claim was responsible for the rocket attack.
Israeli officials told Reuters on Monday that Israel wants to hurt Hezbollah, but avoid all-out war.
