Oil Prices Fall As Mideast Tensions Cool and Inflation Concerns Rise

Crude futures fell over 2% on hotter than expected PPI data and signs the Israel-Hamas conflict may not spread.

Oil surged 4% on Monday over worries of Middle East conflict but stabilized Tuesday as Iran appears uninvolved.

Supplies unlikely to be disrupted unless US enforces Iran oil export restrictions or Strait of Hormuz closes.

Oil prices also fell amid hotter PPI showing sticky inflation and potential for more Fed rate hikes.

Crude pulled back from 2022 highs in September after rallying 28% last quarter on OPEC+ cuts creating a deficit.