Oil prices were largely flat on Monday. However, gains were limited as the prospect of weaker demand and a potential supply glut in the coming months continued to weigh on crude markets, leading to steep losses.
Brent oil futures expiring in September rose slightly by 0.2 percent to $81.25 a barrel, while West Texas Intermediate crude futures edged lower by 0.1 percent to $77.06 a barrel by 21:16 ET (01:16 GMT).
The rising tensions in the Middle East led traders to attach a modest risk premium to oil prices.
Oil prices saw limited gains despite the prospect of potential supply disruptions, as the outlook for crude demand remained bleak. Persistent concerns over top importer China, as it grappled with a slowing economic recovery, continued to put downward pressure on oil, following steep losses in crude over the past three weeks.
Read more: Oil prices steady on strong U.S. GDP, but headed for third weekly losses
The prospect of a supply glut in the coming months, amid increased oil production in the U.S. and other non-OPEC countries, also weighed on oil prices in recent weeks.
Markets were also largely risk-off in anticipation of a U.S. Federal Reserve meeting this week, where the central bank is widely expected to keep interest rates on hold. However, focus will be on whether the Fed signals a potential September rate cut, as expectations of such a move have grown steadily following soft inflation readings and encouraging comments from Fed officials.
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