Oil declined in early Asian trade but remains above $100 a barrel as the Middle East conflict continues to squeeze supply. The drop comes despite ongoing geopolitical tensions and production concerns keeping prices elevated. Market analysts note that while short-term profit-taking has pressured crude, the underlying supply tightness from regional instability continues to support prices.

Traders are monitoring developments in the Middle East closely, as any escalation could quickly reverse the current downward pressure. The market remains sensitive to any news regarding output disruptions or diplomatic breakthroughs in the region.