Ammon News - Oil prices fell by more than 1% on Monday, as the market focus switched to fundamentals after Israel and Iran played down the risk of an escalation of hostilities following Israel's strike on Iran.

Brent futures fell $1.21, or 1.4%, to $86.08 a barrel by 0655 GMT.

The front-month U.S. West Texas Intermediate (WTI) crude contract for May , which expires on Monday, fell 97 cents, or 1.2%, to $82.17 a barrel, while the more active June contract dropped $1.23 to $80.99 a barrel.

Both benchmarks spiked more than $3 a barrel early on Friday, after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack. Gains were capped after Tehran played down the incident and said it did not plan to retaliate.

Reuters