Oil prices pared gains in early trade on Monday after charting their biggest weekly rise in over a year on Friday amid mounting threats of a region-wide war in the Middle East.

Oil markets are on edge this week as traders try to anticipate impacts on oil supplies from a potential major retaliation on Iran by Israel.

Any extended rise in energy prices raises the possibility of higher petrol prices and increased gas and electricity bills, pushing up the rate of inflation. So far this year, weaker demand from China and ample supply from Saudi Arabia have acted to hold down oil prices.

Oil prices fell on Monday after posting their steepest weekly rise in over a year last week as oversupply concerns amid softer demand countered the worries of a wider Middle East war disrupting exports in the key producing region.

NAB International Senior Economist Gerard Burg has confirmed rising tensions in the Middle East have caused lifted oil prices over the last few weeks.

Oil Prices Decline After Middle East Tensions Surge Oil prices fell in Asian trading on Monday, following a significant rally last week. Brent crude futures dropped 0.5% to $77.64 a barrel, and West Texas

Crude oil prices see their largest weekly gain in over a year due to rising tensions between Israel and Iran-backed Hezbollah.

Global oil prices have surged once again, but despite the upward trend, the Kenya shilling has held steady, maintaining stability against major foreign currencies, according to the Central Bank of Kenya (CBK).