Oil prices fell more than 1% a barrel on Monday with Brent falling below $90 as war tensions in the Middle East eased after Israel pulled more troops from southern Gaza.
This is also in response that they are committed to negotiations on a ceasefire in the conflict that has lasted for six months.
Brent crude fell $1.48 (1.6%) to $89.69 a barrel. In addition, West Texas Intermediate (WTI) crude oil was at $85.54 per barrel, down $1.37 (1.5%).
According to IG Market Analyst, Tony Sycamore said that Israel has withdrawn all but one brigade of its troops on the Southern Gaza Strip.
It came in response to growing international pressure and easing tensions after they killed a senior Iranian commander in Syria last week.
Recently, Israel and Hamas sent troops to Egypt for new talks on a potential ceasefire ahead of the Eid al-Fitr holiday and easing tensions in the Middle East that pushed oil prices up more than 4% last week.
Israeli Defense Minister Yoav Gallant said that Israel is ready to deal with any scenario that may arise with Iran after Tehran threatened to take revenge for the killing of their commander on April 1.
Meanwhile, the US jobs report last Friday exceeded expectations. The economy ended its first quarter on a strong note and has the potential to extend the Fed's interest rate cuts this year.
The Fed may push back on rate cuts amid strong US economic data and a tight labor market.
Investors will look to Consumer Price Index (CPI) data from the US and China due out later this week for further clues on the timing of a possible rate cut as both are the world's biggest consumers of major oil.
