Oil prices fell on Monday after Iran’s reprisal attack on Israel over the weekend.
Brent crude was lower but still trading close to $90 per barrel.
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.
When Russia invaded Ukraine in 2022, oil prices soared to $120 per 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.
Israeli Defence Minister, Yoav Gallant has said the confrontation with Iran is “not over yet”.
His comments came after Iran launched drones and missiles towards Israel at the weekend after vowing retaliation for an attack on its consulate in the Syrian capital Damascus on 1 April. Israel has not said it carried out the consulate strike, but is widely believed to have been behind it.