As market attention turned to fundamentals after Israel and Iran downplayed the risk of an escalation of hostilities following Israel's apparently minor strike against Iran, oil prices fell by more than 1% on Monday.

Brent futures fell $1.21, or 1.4%, to $86.08 per barrel at 06:55 GMT. The first-month US West Texas Intermediate (WTI) crude contract for May, which expires on Monday, fell 97 cents, or 1.2 percent, to $82.17 per barrel, while the more active June contract fell from $1.23 to $80.99 per barrel. Both benchmarks shot up by more than $3 per barrel early Friday after explosions were heard in the Iranian city of Isfahan, which sources described as an Israeli attack. According to Yeap Jun Rong, market strategist at IG, “Brent crude prices have failed to maintain their initial rise, with high expectations that geopolitical tensions between Israel and Iran could ease given Iran's moderate response