(Bloomberg) -- Oil fell after its first back-to-back weekly decline this year as traders weighed the potential next steps from Iran and Israel amid simmering tension in the Middle East.

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Brent edged lower to near $87 a barrel after losing 3.5% last week, the biggest decline since early February. The US passed new sanctions on Iran’s oil sector, and also approved fresh funding for Ukraine in its war against Russia.

Oil is around 13% higher this year due to the geopolitical tensions and OPEC+’s supply cuts that have tightened the market. Investors will focus on a slew of US economic data this week, including the Federal Reserve’s preferred measured of inflation, which will give more clues on the path for monetary policy.

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