Crude benchmarks slumped on Tuesday as traders fretted about weak Chinese demand and weighed up a report saying that Israel won't attack Iranian oil targets.

European natural gas prices slumped after a report that Israel is willing to avoid striking oil and nuclear targets when it retaliates against Iran for a recent attack.

Oil prices rose than $6 per barrel (5.47 euros) this week and prices at the pump moved higher as well. The average price for a gallon of gas rose 5 cents from last week. Any major escalation of tensions in the Middle East conjures up memories of the oil embargo that followed the start of the Yom Kippur war in 1973, which quadrupled oil prices.