Oil prices fell on Monday after Iran's attack on Israel over the weekend as markets await to see how the conflict might affect global supply chains.
Brent crude has been trading at around about $90 a barrel, dropping as low as $89.50 on Monday, down from the $92 a barrel, a near-six-month high, it was trading at on Friday.
Analysts say Israel's response to Iran's attacks will be key for global markets in coming days and weeks, after Israeli Defence Minister Yoav Gallant said the conflict with Iran is "not over yet".
"The situation remains fraught," said Russ Mould, investment director at AJ Bell.
He told the BBC: "Beyond the geopolitical and humanitarian implications, a more widespread conflict in the Middle East could see energy prices surge and unpick central banks' careful efforts to bring down inflation."
Iran is the seventh largest oil producer in the world and is the third-largest member of Opec.
Another key issue for the oil price will be the Strait of Hormuz, after Iran seized a commercial ship with links to Israel as it passed through it on Saturday.
The shipping route lies between Iran and Oman with about a fifth of the world's total oil supply passing through it.