Oil prices fell on Monday after Iran’s reprisal attack on Israel over the weekend.
Brent crude – a key benchmark for oil prices internationally – was lower but still trading close to $90 a barrel on Monday morning.
Prices had already risen in expectation of action by Iran, with Brent crude nearing a six-month high last week.
Analysts said the markets would be looking to see how the conflict could affect global supply chains.
Oil price fluctuations can cause ripple effects across the world due to countries being heavily reliant on the commodity, which is used to produce fuels such as petrol and diesel. Fuel and energy prices have been a major driver behind the higher cost of living worldwide in the past couple of years.
According to the BBC, when Russia invaded Ukraine in 2022, oil prices soared to $120 a barrel over supply fears as western nations imposed sanctions on Russia, one of the world’s major oil exporters. The jump led to not only higher prices at the pumps, but also countless other goods as businesses adjusted their prices to cover higher costs.
Analysts said Israel’s reaction to the attack would be key for global markets in the days and weeks ahead.
