Oil prices fell sharply in early Asian trade on Monday, easing fears of a Middle East war after an Israeli strike against Iran eased fears of a Middle East war that ended the weekend lower than feared.
Brent oil futures, due in December, fell 4.1% to $72.97 a barrel, while West Texas Intermediate crude futures were down 4.2% to $68.76 a barrel. Both contracts were near their weakest levels since early October.
Israel strike against Iran avoids oil, nuclear sites. Israel launched strikes against several Iranian military bases on Saturday, but avoided the country’s main oil production and nuclear facilities. Iran downplayed the impact of the attack but threatened to retaliate.
The Israeli attack eased fears of a major escalation in the long-running Middle East conflict. Traders feared any attacks on Iran’s oil and nuclear infrastructure would mark an ugly escalation in the conflict, disrupting oil supplies from the crude-rich region. The sentiment boosted crude prices last month, especially after Iran attacked Israel in early October.
