Oil prices retreated on Monday after the U.S. pulled back from initial sanctions threats against Colombia, reducing immediate concern over oil supply disruptions, though U.S. President Donald Trump's muscle-flexing is keeping markets twitchy.

Most Read from BloombergWhat Happened to Hanging Out on the Street?Vienna Embraces Heat Pumps to Ditch Russian GasBillionaire Developer Caruso Slams LA Leadership Over WildfiresHow Sanctuary Cities Are Preparing for Another Showdown With TrumpHoboken PATH Station Will Close for Almost a Month on Jan.

Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders on edge. Brent crude futures dropped 24 cents,

Crude oil futures traded lower on Monday morning after the US threatened to impose tariffs and sanctions on Colombia after it refused to accept military deportation flights from the US.