By Erwin Seba HOUSTON (Reuters) -Brent crude futures, the international oil benchmark, fell $4 a barrel on Tuesday as fears of supply interruptions from the conflict between Israel and Iran and a massive Gulf of Mexico hurricane eased.

Brent Crude is nearing $80 a barrel amid fears of elevated conflict in the Middle East. Brent Crude futures (CO1:COM) are up $1.23, or 1.57%, to $79.28 a barrel early Monday. Also, WTI crude futures (CL1:COM) are up $1.

Adding to the complex market dynamics, the American Petroleum Institute (API) reported that US crude oil inventories decreased by 1.5 million barrels during the week. This decline was less than the anticipated drop of 2.1 million barrels, marking the second consecutive weekly decrease but suggesting that demand may not be as robust as expected.

Oil prices settled more than 3% higher on Monday, with Brent surpassing $80 per barrel for the first time since August as the increased risk of a region-wide Middle East war jolted investors out of record bearish positions amassed last month.