Oil prices fell on Monday, after posting their steepest weekly rise in more than a year last week, as oversupply concerns amid softer demand countered the worries over a wider Middle East conflict disrupting exports in the key oil-producing region.

Oil markets are on edge this week as traders try to anticipate impacts on oil supplies from a potential major retaliation on Iran by Israel.

Oil prices' steepest weekly rise since March 2023 began when Iran's historic missile strike on Israel Tuesday rekindled fears of a wider war. It ended with a U.S. jobs report that suggested the world's largest economy is still humming.