Oil prices settle at lowest in over a week, as US pauses attacks on Iran

Elsewhere, Kazakhstan, among the world's 10 biggest oil producers, has more than halved its daily oil output following the closure of the main exporting terminal in Russia's Black Sea over drone attacks, an industry source said on Monday.

The energy ministry later said the Caspian Pipeline Consortium's Black Sea terminal had resumed oil loadings.

Industry analysts said they expect oil markets to be highly volatile in response to updates around the unofficial ceasefire between the U.S. and Iran, and warned that the physical flow of oil remains constrained despite the truce.

"Shipping volumes remain heavily depressed after a brief mid-June ceasefire, limiting Middle East exports and forcing longer, costlier reroutes via Suez for Saudi Red Sea cargoes," said Alex Hodes, director of energy market strategy at brokerage StoneX.