Analysis reports from major financial institutions and commodity analysts

Oil Prices Plunge Over 5% to Multi-Month Lows as Israel's Strikes on Iran Avoid Oil Facilities

Oct 28, 2024, 01:20 AM

Oil prices plunged over 5% after Israel's retaliatory strikes on Iran over the weekend avoided targeting Tehran's oil and nuclear facilities, easing concerns over potential disruptions to energy supplies in the Middle East. Brent crude futures fell to $72.75 per barrel, and West Texas Intermediate (WTI) slid to $68.52, reaching their lowest levels in months. The Israeli attacks, carried out under White House pressure, were limited to military targets, and Iran downplayed the strikes, with state media reporting that the country's oil industry activities were operating normally. Analysts noted that the geopolitical risk premium is expected to deflate rapidly, with Brent heading back towards $74-$75 a barrel. Investors reacted positively to the restrained strikes, as markets opened higher and fears of an escalation in the region subsided.