Brent crude futures were down 18 cents, or 0.22%, at $80.89 a barrel by 0101 GMT. U.S. West Texas Intermediate crude futures were down 22 cents, or 0.29%, at $75.35 a barrel.

On Tuesday, prices rose by more than two percent to the peak of the month, while continuing the upward momentum that occurred last week, in which prices rose by more than three percent, among other things due to the growing expectation of lowering interest rates in the US, which may boost economic growth and increase demand.

However, the possibility that the Israeli military campaign in Gaza will continue for a long time and that the conflict will spill over into attacks on ships in the Red Sea remains, according to key market sources.

Israel's Chief of Staff, Harzi Halevi, told reporters on Tuesday that the war in Gaza would last "several months", while the Iranian-backed Yemeni Houthi organization claimed responsibility for a missile attack on a container ship in the Red Sea.

Despite the attack, major shipping companies such as Denmark's Maersk and France's CMA CGM resumed passage through the Red Sea after a multinational task force was deployed in the area. The German company Fag-Lloyd is expected to announce on Wednesday its decision regarding the resumption of sailing in the area.

A preliminary survey conducted by Reuters on Tuesday showed that US crude oil inventories are expected to fall by 2.6 million barrels from last week, while distillate and gasoline inventories are expected to rise. (Credit: Alhora)

Note in the background of the news: Israel and Egypt will greatly increase the presence of their warships in the Egyptian area of Bab Almandab and in front of the western coast of Yemen. 

The US Navy, which leads the naval task force in the Red Sea, coordinates the patrols of the various fleets that have been called to the area, and in fact they accompany the merchant ships that use this shipping lane while leveling the road and covering it against sea mines that the Houthis have planted by the hundreds in the Bab Almandav opening as well as protection against coastal missiles guided ships as well as remotely piloted bomb boats that the Houthis send from an anchorage north of the port of Hodeidah in the northwest of the country.