Oil prices have fallen despite the increasing tensions in the Middle East following Iran’s unprecedented attack on Israel.

Brent crude, the international benchmark, has slipped 39 cents but remains above $90, having initially risen to $91.05 a barrel after Tehran launched drone strikes late on Saturday.

Oil prices climbed close to six-week highs last week as markets prepared for a potential retaliation by Iran to a suspected Israeli strike on its embassy in Syria earlier this month, amid fears a wider war in the region could disrupt oil supplies.

The attack over the weekend marked the first time Iran had ever launched a military assault on Israel, despite decades of enmity dating back to the country’s 1979 Islamic Revolution.

Stephen Innes, managing partner at SPI Asset Management, said: “While the drone attack has grabbed headlines, its immediate impact on global markets, particularly oil prices and inflation concerns, may be subdued.

 “The precision and limited lethal impact of Iran’s response suggest a strategic approach aimed at minimising damage rather than escalating tensions.”

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