Crude benchmarks slumped on Tuesday as traders fretted about weak Chinese demand and weighed up a report saying that Israel won't attack Iranian oil targets.

Brent crude, the international benchmark, was trading at below $74 a barrel on Tuesday, a drop from the $80 range.

Oil futures tumbled Tuesday, with the U.S. benchmark dipping back below $70 a barrel, after a report that Israel will not attack key oil facilities in Iran. The Washington Post, citing officials familiar with the matter,