Israel's decision to reduce its troop presence in the Gaza strip has had ripple effects on global oil prices. Over the weekend, Israeli forces withdrew from the southern Gaza city of Khan Younis, marking one of the lowest levels of troop presence since the conflict with Hamas began last October.

As tensions escalated between Israel and Iran, U.S. crude and Brent saw an increase of over 4% last week. However, following Israel's troop reduction, U.S. crude oil futures experienced a decline on Monday. The West Texas Intermediate contract for May delivery fell by 48 cents, or 0.55%, settling at $86.43 a barrel. The June Brent contract also dipped by 79 cents, or 0.87%, settling at $90.38 a barrel.

Negotiations for a ceasefire between Israel and Hamas continue in Cairo, further impacting the volatile oil market. Concerns over a potential direct confrontation between Israel and Iran have reignited fears of a regional conflict that could disrupt crude supplies.

Additionally, a top Iranian military advisor issued a warning to Israel, stating that its embassies could be targeted. This comes after Tehran blamed Israel for a missile strike on its consulate in Damascus, which resulted in the death of Iranian commander Mohammad Reza Zahedi. Gen. Rahim Safavi, an advisor to Iran's supreme leader Ayatollah Ali Khamenei, declared that "none of the embassies of the (Israeli) regime are safe anymore."

Further fueling the uncertainty in the market, Ukraine's drone attacks on Russian oil refineries have also contributed to the rise in crude prices. With global supplies already tightening due to robust economic growth and OPEC+ production cuts, these events have added to the prevailing supply concerns.

As the situation continues to unfold, analysts and investors closely monitor oil prices and assess the potential impact on various sectors of the economy. The recent developments highlight the intricate link between geopolitical events and energy markets, underscoring the need for caution and preparedness in the face of uncertainties.

In the coming days, market participants will be closely watching for any progress in the ceasefire negotiations and potential actions by both Israel and Iran. While the immediate focus remains on the stability of crude supplies, the broader implications of geopolitical tensions on global energy security persist.

Disclaimer: The information presented in this article is based on the provided text and is subject to change as the situation develops.