Oil prices tumble after Israeli attacks spare Iran facilities
- By AFP -
- Oct 28, 2024
Oil prices tumbled in early Asian trading Monday with dealers relieved that Israeli strikes carried out Saturday against military targets in Iran had spared the country’s oil installations.
The price of North Sea Brent for delivery in December fell by 4.05 percent to $72.97, while West Texas Intermediate plunged by 4.19 percent to $68.77.
Israel said it hit Iranian missile factories and military facilities across several provinces at the weekend.
“Israel’s strike, carefully avoiding energy sites, has softened fears of a full-scale conflict with Iran,” said Stephen Innes, analyst at SPI Asset Management.
Read more: Iran plays down Israel’s strikes, says they caused ‘limited damage’
“Even more telling is Iran’s response, downplaying the attack’s impact and signaling that its warnings may have deterred any more aggressive action from Israel,” he said.
“This sets up a potential ongoing deflation in oil’s risk premium over the coming days.”
Prices could continue falling if tensions ease further, he said, potentially slipping to $60 a barrel as traders shift focus to the prospect of a 2025 supply glut.