09:12 AM EDT, 05/07/2024 (MT Newswires) -- Oil fell to a seven-week low early on Tuesday amid hopes for a ceasefire deal in the war between Israel and the Hamas militant group while weak demand concerns continue to check prices.

West Texas Intermediate crude for June delivery was last seen down US$0.40 to US$78.08 per barrel, the lowest since March 12, while July Brent crude, the global benchmark, was down US$0.44 to US$82.89.

Israel rejected an Egyptian ceasefire proposal accepted by Hamas on Monday, though it said it will send a representative to Cairo for further talks, the Guardian reported. Despite the promise of further negotiations, Israel is stepping up attacks on the city of Rafah in Gaza despite international pressure from the United States and other countries concerned about a yet higher toll on civilians crowded into the city.

"Geopolitics are back to support....crude oil prices after Israel rejected a ceasefire proposal for Gaza Strip that was accepted by Hamas," Saxo Bank noted.

Demand concerns are tempering geopolitical risks after last week's inventory report from the Energy Information Administration showed a large and unexpected 7.3-million barrel rise in US oil inventories. The American Petroleum Institute will release its survey of private oil inventories later Tuesday afternoon, followed by official data from the EIA on Wednesday morning,