LONDON, April 14 (Reuters) - Oil prices are expected to

rise on Monday after Iran's attack on Israel over the weekend,

analysts said on Sunday, but further gains may depend on how

Israel and the West choose to retaliate.

Iran launched explosive drones and missiles at Israel late

on Saturday in retaliation for a suspected Israeli attack on its

consulate in Syria on April 1, a first direct attack on Israeli

territory that has stoked fears of a wider regional conflict.

Concern of a response from Iran to the strike on its embassy

compound in Damascus supported oil last week and helped send

global benchmark Brent crude on Friday to $92.18 a barrel, the

highest since October.

It settled that day up 71 cents at $90.45, while U.S. West

Texas Intermediate crude futures rose 64 cents to $85.66.

Trading is closed on Sunday.

"It is only reasonable to expect stronger prices when

trading resumes," said Tamas Varga of oil broker PVM. "Having

said that, there has been no impact on production so far and

Iran has said that 'the matter can be deemed concluded'.

"However fierce and painful the initial market reaction will

be, the rally could prove to be short-lived unless supply from

the region is materially disrupted."

U.S. President Joe Biden said he would convene a meeting of

leaders of the Group of Seven major economies on Sunday to

coordinate a diplomatic response to the Iranian attack.

"Oil prices might spike at the opening as this is the first

time Iran has struck Israel from its territory," said UBS

analyst Giovanni Staunovo.

"How long any bounce will last will... depend on the Israeli

response," Staunovo added. "Also today's G7 virtual meeting

needs to be monitored, with an eye on if they target or not

Iranian crude exports."

Iran has steeply raised oil exports - its main sources of

revenue - under the Joe Biden administration. Exports were

severely reduced under Biden's predecessor Donald Trump, who

will face Biden in a presidential election rematch in November.

The Biden administration has argued it is not encouraging

Iran to raise exports and is enforcing sanctions.

Lower Iranian exports would lead to a further rise in oil

prices and the cost of gasoline in the U.S., a politically

sensitive subject ahead of the elections.

Another factor to watch will be any impact on shipping

through the Strait of Hormuz, through which about a fifth of the

volume of the world's total oil consumption passes daily.

The commander of Iran's Revolutionary Guard's navy said on

Tuesday Tehran could close the strait if deemed necessary, and

earlier on Saturday, Iran's state-run IRNA news agency reported

a Guards helicopter had boarded and taken into Iranian waters a

vessel, the Portuguese-flagged MSC Aries.

"Crude prices already included a risk premium, and the

extent to which it will widen further almost exclusively depends

on developments near Iran around the Strait of Hormuz," said Ole

Hansen at Saxo Bank.