KEY POINTS
  • Oil prices fell on Tuesday despite tensions in the Red Sea, a crucial waterway for global trade.
  • Maersk said it will pause shipping through the Red Sea until further notice after one of its vessels came under attack
  • Iran has deployed a destroyer to the Red Sea without elaborating on the details of the warship's mission
A picture taken during an organised tour by Yemen's Houthi rebels on November 22, 2023 showing the Galaxy Leader cargo ship approaching the port in the Red Sea off Yemen's province of Hodeida.

Oil prices fell Tuesday as traders monitored rising tensions in the Red Sea amid a backdrop of record U.S. crude production and worries about demand in China.

The West Texas Intermediate contract for February lost $1.27, or 1.77%, to settle at $70.38 a barrel. The Brent contract for March shed $1.15, or 1.49%, to trade at $75.89.