Also weighing was stronger-than-expected U.S. retail sales for March that further reinforced expectations the U.S. Federal Reserve is unlikely to rush to cut interest rates, a scenario that dampens the prospects for oil demand.

Brent futures for June delivery fell 52 cents, or 0.6%, to $89.58 a barrel by 1218 GMT. U.S. crude for May slipped 55 cents, or 0.6%, to $84.86, Reuters reported.

"The balancing act between sticky inflation, a hesitant Fed and the gradual move towards a full-blown regional conflict keeps oil...in its range," said Tamas Varga of oil broker PVM.

"Material disruption to oil production, supply or shipping must take place to approach the $100 a barrel milestone. Currently such a development appears implausible."

Concern that Iran would respond to the strike on its embassy compound in Damascus helped send Brent on Friday to $92.18, the highest since October.

"As the risk to supply is waning and a military response from Israel looks less likely as more time passes, prices are holding steady," said Rystad Energy's Jorge León. "Tensions are high, and either party's next moves are hard to predict."

Iran will respond to any action against its interests, President Seyyed Ebrahim Raeisi said on Tuesday, according to the Iranian Student News Agency (ISNA), a day after Israel warned it will respond to Tehran's weekend drone and missile attack.

Iran produces more than 3 million barrels per day of crude oil as a major producer within the Organization of the Petroleum Exporting Countries (OPEC).