Oil prices have slumped by 2pc today as investors bet on a delay to Israel’s ground invasion of Gaza.

Brent crude price fell to as low as $91.11 in early trading, down from $92.51 yesterday as Israel held off on its attack amid diplomatic negotiations to secure the release of more hostages.

West Texas intermediate also fell to close to $87 per barrel after two consecutive weeks of price rises.

Brent crude prices have climbed by 8pc since Hamas attacked Israel on October 7 as markets fear the conflict will escalate across the Middle East and threaten regional oil supplies.

Yeap Jun Rong, market strategist at IG Asia Pte told Bloomberg that oil is “taking a breather while the focus on humanitarian aid and securing hostage releases suggest that a potential ground invasion from Israel can wait. That may contain the risks of further escalation, at least for now.”

The risk premium attached to the conflict could also be offset if Venezuelan oil exports are boosted after the US took the first steps in unwinding its sanctions against the country last week.

Read the latest updates below.