China's economic uncertainties have taken center stage in the global market, overshadowing escalating tensions in the Middle East. Following a rocket attack from Lebanon that tragically claimed the lives of 12 children in the Israeli-occupied Golan Heights, Israel is anticipated to retaliate against the Iran-backed militia Hezbollah. Despite this unfolding conflict, U.S. crude oil futures experienced a dip to their lowest levels since early June due to concerns surrounding China's economic slowdown.

On Tuesday, the West Texas Intermediate September contract fell by $1.10, amounting to a 1.46% drop and settling at $74.71 per barrel. Meanwhile, the Brent September contract decreased by $1.24, or 1.55%, closing at $78.54 per barrel. Gasoline prices also saw a decline, with the RBOB Gasoline August contract dropping nearly 3 cents to $2.38 per gallon. Conversely, natural gas prices rose by 7 cents to $2.11 per thousand cubic feet.

In response to the rocket attack, Israel launched an airstrike in a suburb of southern Beirut aimed at a Hezbollah commander allegedly tied to the incident. While Israeli military actions are escalating in the region, officials have expressed a desire to weaken Hezbollah without escalating into all-out war. Overall, fears about China's economic turmoil and its impact on crude oil imports continue to exert significant influence on global energy markets.