Oil declines as investors assess the repercussions of unrest in the Middle East

Oil prices fell on Monday, with Friday’s rise relatively subsiding as investors awaited the repercussions of the conflict between Israel and the Islamic Resistance Movement (Hamas) on other countries, which could push prices up and deal a new blow to the global economy.

Brent crude futures fell 34 cents, or 0.4 percent, to $90.55 per barrel, and West Texas Intermediate crude futures fell 41 cents, or 0.5 percent, to $87.28 per barrel by 0048 GMT.

The two crude oil prices rose by about six percent on Friday, the largest daily rise in percentage terms since April, as investors took into account the expanding scope of the conflict in the Middle East.

During the week, Brent achieved record gains and rose 7.5 percent, while West Texas Intermediate crude increased 5.9 percent.

The conflict in the Middle East has had little impact on global oil and gas supplies, and Israel is not a major producer.

But the war between Hamas and Israel poses one of the most important geopolitical risks to oil markets since the Russian invasion of Ukraine last year, amid concerns about any potential escalation involving Iran.

Market participants are assessing what a broader conflict might mean for supplies from countries in the world’s largest oil-producing region, including Saudi Arabia, Iran and the United Arab Emirates.