(Bloomberg) -- Oil declined following a five-day rally as traders monitored hostilities in the Middle East, and the prospect for further stimulus from China after the nation returned from a week-long holiday.

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Brent slid toward $80 a barrel after advancing almost 13% over the past five sessions, while West Texas Intermediate traded near $77. The market continues to watch for Israel’s retaliation against Tehran following a missile attack last week, as fighting escalated on Monday with Iran-backed groups.

China’s top economic planner is holding a press briefing on Tuesday to discuss a package of policies aimed at boosting economic growth in the world’s biggest crude importer. Chinese equities surged as trade resumed after the holiday and crude futures in Shanghai rallied to their upper limit.

“Crude is not getting the love from China that Chinese equities are,” said Vishnu Varathan, the Asia head of economics and strategy for Mizuho Bank Ltd. in Singapore. “Perhaps because the path of least resistance for the liquidity deluge is to the equity markets” rather than commodities, he added.

Traders are transfixed on developments in the Middle East after Iran’s missile barrage toward Israel raised fears about an all-out war. The region accounts for a third of global crude supply, and President Joe Biden has sought to discourage Israel from attacking Tehran’s oil fields.

Other markets have been jolted by the hostilities, with a gauge of implied volatility for Brent near the highest in a year. There’s been a deluge of call options — which profits buyers when futures gain — and the premium of Brent calls over puts swelled to the widest in a year as of Monday’s close.

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