* Brent and WTI crude hit lowest levels in weeks after

ceasefire

* Iran warns it may resume hostilities if Israel attacks

Hezbollah in Lebanon

* China's crude imports slump 29% in May, weighing on global

oil prices

(Adds latest prices, changes dateline to New York from London)

By Scott DiSavino

NEW YORK, June 9 (Reuters) - Oil prices fell about 4% on

Tuesday after Iran and Israel said they had halted attacks on

each other following an appeal from U.S. President Donald Trump.

Brent futures fell $3.40, or 3.6%, to $90.85 a barrel at

10:28 a.m. EDT (1428 GMT), while U.S. West Texas Intermediate

(WTI) crude slid $3.71, or 4.1%, to $87.59.

That put Brent on track for its lowest close since April 17

and WTI on track for its lowest close since May 29.

Israel and Iran halted direct attacks on each other on

Monday after an appeal by Trump for them to stop, but Tehran

said it would resume hostilities if Israel continued to attack

its ally, the Hezbollah militia in Lebanon.

Iran, however, has so far held back from attacking even after

Israel struck the historic port city of Tyre in southern Lebanon

on Tuesday, killing at least eight people.

"The oil market is drafting lower ... as the latest shooting

match between Israel and Iran was diffused in favor of a

ceasefire and as Trump continues to talk the market lower by

suggesting that an end of the war with Iran could be reached in

2-3 days with negotiations in their final stages," analysts at

energy advisory firm Ritterbusch and Associates said in a note.

Iran has continued to block most shipping through the Strait

of Hormuz, which before the war carried a fifth of the world's

crude oil and liquefied natural gas. Washington has imposed its

own blockade of Iranian ports.

Elsewhere around the world, China's May crude imports slumped

29% to their lowest levels in eight years, extending a sharp

decline in the world's largest oil importer that is helping keep

a lid on global oil prices.

WORLD SUPPLY, DEMAND AND INVENTORIES

The oil market awaited global oil supply and demand data

from the U.S. Energy Information Administration (EIA) on

Wednesday and weekly storage reports from the American Petroleum

Institute (API) trade group later on Tuesday.

Analysts estimated energy firms pulled 3.4 million barrels

of crude from U.S. storage during the week ended June 5.

If correct, that would be the first time energy firms pulled

crude out of storage for seven weeks in a row since January

2025. It compares with a decrease of 3.6 million barrels in the

same week last year and an average decline of 0.7 million

barrels over the past five years (2021 to 2025).