BEIJING, April 9 Reuters Oil prices rose on Tuesday after hopes diminished that negotiations between Israel and Hamas would lead to a ceasefire in Gaza amid concerns the lingering conflict could potentially disrupt supply from the key Middle East producing region.

Brent crude futures rose 14 cents to 90.52 a barrel by 0610 GMT. U.S. West Texas Intermediate WTI crude was 10 cents higher at 86.53.

A fresh round of IsraelHamas ceasefire discussions in Cairo had ended a multisession rally on Monday, leading Brent to its first decline in five sessions and WTI to its first in seven on the prospect that geopolitical risks could ease.

But Israeli Prime Minister Benjamin Netanyahu said on Monday an unspecified date had been set for Israel39;s invasion of the Rafah enclave in Gaza.

That is ending the hopes that briefly gripped the market yesterday that geopolitical tensions in the region might be easing, Tony Sycamore, a market analyst with IG, wrote in a note.

Hamas said early on Tuesday that Israel39;s proposal it received from Qatari and Egyptian mediators did not meet any of the demands of Palestinian factions. But Hamas said it would study the proposal before responding to the mediators.

Without an end to the conflict, there is an elevated risk that it involves other countries in the region, especially Iran, a major Hamas backer and the thirdlargest producer in the Organization of the Petroleum Exporting Countries OPEC.

An Iranian response to Israel39;s suspected attack…