Oil prices have fallen after a rise in US crude stockpiles and a climb in the dollar index, giving up some ground gained a day earlier when prices jumped on Middle East tensions, Reuters reports.

The benchmark oil contracts had settled nearly 2 per cent higher yesterday but fell back after the Wall Street Journal reported that Israel has agreed to delay an expected invasion of Gaza for now.

“The movements of oil markets are primarily involved with the Hamas-Israel war,” said Tina Teng, markets analyst at CMC.