Ammon News - Oil prices fell on Thursday with investors hesitating to take new positions after President Donald Trump gave mixed signals on potential U.S. involvement in the Israel-Iran conflict, while the Federal Reserve left interest rates unchanged.

Brent crude futures fell 20 cents, or 0.26%, to $76.5 a barrel by 0421 GMT, after gaining 0.3% in the previous session when high volatility saw prices fall as much as 2.7%.

U.S. West Texas Intermediate crude for July fell 4 cents, or 0.05% to $75.10 a barrel, after settling up 0.4% in the previous when it dropped as much as 2.4%.

The July contract expires on Friday and the more active August contract was down 8 cents, or 0.11%, to $73.42 a barrel.

Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels per day (bpd) of crude oil.

About 19 million bpd of oil and oil products move through the Strait of Hormuz along Iran's southern coast and there is widespread concern the fighting could disrupt trade flows.

Lower interest rates would stimulate the economy, and as a result demand for oil, but that could exacerbate inflation. Reuetrs