New York, (IANS) : Oil prices settled lower on Monday as geopolitical tensions in the Middle East raised market concerns.

The United Arab Emirates (UAE), along with Saudi Arabia, Bahrain and Egypt cut diplomatic ties with Qatar, accusing the Gulf state of supporting and financing “terrorism” as well as interfering in their internal affairs.

The decision of a number of Arab countries to sever diplomatic relations with gas-rich Qatar would impose a strict regional isolation on Doha and raised concerns about a global deal to reduce oil production, Xinhua quoted analysts as saying.

The West Texas Intermediate for July delivery lost $0.26 to settle at $47.40 a barrel on the New York Mercantile Exchange, while Brent crude for August delivery erased 0.48 dollar to close at $49.47 a barrel on the London ICE Futures Exchange.