Oil traded flat on Monday after experiencing a steep drop the earlier week, as Washington's promise to carry out more strikes on Middle Eastern militants sponsored by Iran and the solid US job figures dashed hopes of early interest rate cut.

Brent crude futures dipped by 0.2% to $77.15 per barrel, meanwhile US WTI dipped 0.3% at $72.04 per barrel.

The two benchmarks wrapped up the earlier weeks with a drop of 7% following better than anticipated US job figures indicating that the interest rate trim will not happen anytime soon as projected.

US job growth advanced in January, indications that could impede the US fed’s interest rate reductions, that the financial markets had anticipated, could begin in May.

Meanwhile, it seemed unlikely that Israel and Hamas would make headway in their ceasefire talks, suggesting that tensions in the area that produces oil will continue.

Investors continued to exercise caution in case the Middle East situation escalated, following a fatal attack on American troops in Jordan, America hinted at more strikes against organizations in the Middle East that receive support from Iran.