Oil prices fell in early Asian trade after Iran’s reprisal attack on Israel over the weekend.

Brent crude – a key benchmark for oil prices internationally – was lower but still trading close to $90 a barrel on Monday morning.

Prices had already risen in expectation of action by Iran, with Brent crude nearing a six-month high last week.

Israeli Defence Minister Yoav Gallant has said the confrontation with Iran is “not over yet”.

Energy analyst Vandana Hari said: “Clearly, the oil market does not see the need to factor in any additional supply threat at this point.”

Brent crude may well fall below the $90 mark, but a sizeable pullback is unlikely as traders remain focused on the risks associated with the conflicts in Gaza and Ukraine, she added.

Analysts also said Israel’s reaction to the attack will be key to global markets in the days and weeks ahead.

Peter McGuire from trading platform XM.com told the BBC he expected the energy market to be volatile and predicted that oil prices would surge if Israel responded strongly to Iran’s move.

However, April LaRusse, head of investment at Insight Investment, said it was likely that markets would “trade sideways until we have more information”.

“Unfortunately this situation in the Middle East has been going on for some time and the longer you have a bit of geo-political tension going on the more markets wait to see and there isn’t sort of a panic reaction as the first move,” she added.