• WTI Oil drops below $85 after Iran’s drone attack on Israel ended without any massive effects. 
• Oil price set to test support at $84.25 ahead of headline-driven week.
• The US Dollar Index slides below 106.00 as risk on sentiment seems to be taking over.

Oil prices retreat on Monday as markets heaved a big sigh of relief after the Iranian retaliation against Israel was well-communicated and led to very little damage, with investors hopeful that any escalation will prove contained. During the weekend, the attack took place, consisting of a drone and missile attack, from which more than 99% got neutralised by defence systems. Meanwhile, Iran has said it is not seeking further escalation and even the US has already been in touch with Iran, which means the diplomatic machine is working to avoid further escalation.

The US Dollar, meanwhile, is sliding below 106.00 with some outflows out of the Greenback. Global markets seem to be recovering,  with all equities across the board in the green, weighing on safe-haven assets such as the US Dollar.  Looking at the economic calendar, traders can gear up for the US Retail Sales numbers on Monday.