Oil opened higher but quickly gave back some gains. Market reactions were surprisingly muted at the start of the week despite developments in the Iran-Israel hostilities over the weekend.

"The furious exchange of fire between Israel and Iran leaves little doubt about unprecedented escalation in the Iran-Israel conflict," said Vishnu Varathan at Mizuho Securities. That said, the hope for now is that the conflict would not erupt into an all-out war that threatens regional stability,