Oil muted on Tuesday, fluctuating just a few dozen cents in either direction, traders refrained from making significant moves as they awaited the results of Gaza ceasefire discussions, upcoming U.S. inflation data on Thursday, and the decision on whether OPEC+ would prolong voluntary cuts into March.

Brent crude dipped 0.34% to $82.25 per barrel while US WTI slumped 0.27%, to $77.37 per barrel.

Conflicting hints emerged from the Middle East as U.S. President Joe Biden announced that Israel is prepared to cease its Gaza attacks during the Muslim holy month of Ramadan, with a potential ceasefire agreement possibly being signed next week. However, Hamas officials dismissed Biden's remarks as premature, stating that they are currently assessing a truce offer.

The presence of Houthi missiles and drones poses a threat to global shipping, elevating the expenses associated with transporting energy products and contributing to a more constrained market.

On Monday, both oil benchmarks closed more than 1% higher, rebounding from the 2-3% declines witnessed in the previous week, as markets incorporated a heightened probability that rate cuts could be delayed.