- Written by Peter Hoskins & Nick Edser
- business reporter
image source, Getty Images
Oil prices fell in early Asian trading following Iranian retaliatory attacks on Israel over the weekend.
Brent crude, the main benchmark for international oil prices, fell as of Monday morning but was still trading near $90 a barrel.
Prices are already rising on hopes of Iranian action, with Brent crude nearing a six-month high last week.
Israeli Defense Minister Yoav Galant said the conflict with Iran is “not over yet.”
“Obviously, the oil market is not seeing the need to price in further supply threats at this point,” energy analyst Vandana Hari said.
Brent crude could well fall below the $90 milestone, but a significant decline is unlikely as traders remain focused on risks associated with conflicts in Gaza and Ukraine, he added. .
Analysts also said Israel's response to the attack would be key for global markets in the coming days and weeks.
“I think we're going to see some natural fluctuations. If there's any countermeasures by Israel, I think the energy market will move up a lot,” said Peter McGuire of trading platform XM.com. BBC.
Asia-Pacific stock markets also fell on Monday as investors weighed the impact of the attack.
Hong Kong's Hang Seng Index, Japan's Nikkei Stock Average, and South Korea's Kospi Index all fell, while China's Shanghai Stock Exchange Composite Index rose more than 1%.
Gold prices have been slowly rising, hovering near all-time highs and trading near $2,400 an ounce.
Gold is seen as a safe investment in times of uncertainty and soared ahead of this weekend.
Iran fired drones and missiles at Israel over the weekend after announcing an April 1 attack on its consulate in the Syrian capital Damascus.
Israel has not said it carried out the attack on the consulate, but it is widely believed to have been behind it.
Last weekend, Brent crude oil prices hit $92.18 per barrel, the highest since October, but have since fallen back to close at $90.45.
According to the U.S. Energy Information Administration, Iran is the world's seventh largest oil producer and the third member of the OPEC oil producing cartel.
Analysts say a key question for future oil prices is whether shipping through the Strait of Hormuz will be affected.
This strait between Oman and Iran is an important shipping route through which approximately 20% of the world's total oil supply passes.
OPEC members Saudi Arabia, Iran, the UAE, Kuwait and Iraq send most of their oil exports through the strait.
