U.S. crude oil falls below $75 per barrel, lowest level since early June

U.S. crude oil futures on Tuesday fell to their lowest levels since early June as worries about China’s economy overshadow a new round of escalation in the Middle East.

“Macroeconomic considerations keep shaping investors’ sentiment and oil slid through technical supports like a hot knife through butter,” Tamas Varga, analyst at oil broker PVM, wrote in a Tuesday note.

“Chinese economic turmoil, including sluggish growth and falling crude oil imports, is still a major driving force for our market,” Varga said.

Here are Tuesday’s closing energy prices:

• West Texas Intermediate September contract: $74.73 per barrel, down $1.08, or 1.42%. Year to date, U.S. crude oil has gained 4.3%.
• Brent September contract: $78.63 per barrel, down $1.15, or 1.44%. Year to date, the global benchmark has climbed 2%.
• RBOB Gasoline August contract: $2.38 per gallon, down nearly 3 cents, or 1.17%. Year to date, gasoline has gained 13.5%.
• Natural Gas September contract: $2.12 per thousand cubic feet, up 9 cents, or 4.42%. Year to date, gas is down 15.4%.

In the Middle East, meanwhile, tensions have escalated between Israel and the Iran-backed militia Hezbollah, after a rocket fired from Lebanon killed 12 children in the Israeli-occupied Golan Heights.

Israel’s military responded on Tuesday with an airstrike in a suburb of southern Beirut, targeting a commander they claim was responsible for the rocket attack.

Israeli officials told Reuters on Monday that Israel wants to hurt Hezbollah, but avoid all-out war.