LONDON, April 11 Reuters Oil prices slipped on Thursday as persistent inflation dampened rate cut optimism but stayed near sixmonth highs as investors braced for a potential attack on Israeli interests by Iran.

Brent crude futures were down 49 cents or 0.5 to 89.99 a barrel at 1030 GMT, while U.S. West Texas Intermediate crude futures lost 55 cents or 0.6 to 85.66 a barrel.

We think it will be difficult to maintain Brent above 90 in 2H24 without actual supply disruption associated with geopolitical events, said global energy strategist Vikas Dwivedi of Macquarie.

As a result, we expect oil to turn bearish as the year progresses due to nonOPEC supply growth, a material amount of OPEC spare capacity reentering the market, and the potential that continuing inflation softens demand.

Minutes from the U.S. Federal Reserve showed officials worried that progress on inflation might have stalled and a longer period of tight monetary policy would be needed to tame inflation in the world39;s largest economy.

Investors who had earlier expected a rate cut in June now see September as a likelier timing for the easing cycle to begin, following a third straight strongerthanforecast reading on consumer inflation.

Higherforlonger rates could dampen economic growth and suppress demand for oil.

Meanwhile the Middle East is on alert for possible Iranian retaliation for a suspected Israeli air strike on Iran39;s embassy in Syria on April 1.

Earlier this week, Israel and Hamas began a…