Oil Prices Dip in Asia After Iran’s Attack on Israel

Market Response to Iran’s Attack

Oil prices dropped at the start of the week in Asia as risk premiums decreased following Iran’s recent attack on Israel. The Israeli government reported limited damage from the attack that occurred late on Saturday.

Impact on Futures

Oil futures for June delivery dipped by 24 cents to $90.21 a barrel, while West Texas Intermediate (WTI) futures for May delivery fell by 38 cents to $85.28 a barrel as of 1256 GMT.

Concerns and Reactions

The attack, which involved over 300 missiles and drones, was the first on Israel from another country in over thirty years. While there were initial concerns about a broader regional conflict affecting oil traffic in the Middle East, the damage caused was minimal.

Global Response and Market Analysis

Despite the attack, global powers urged restraint, with the U.S. stating it would not participate in any offensive against Iran. Analysts predicted a short-lived rally in oil prices following the attack but emphasized the need for a significant disruption to supply for lasting effects.

Future Outlook and Challenges

The ongoing conflict between Israel and Hamas has had minimal impact on oil supply so far. Factors like U.S. inflation and geopolitical instability may continue to influence oil prices in the medium term.

Final Thoughts

While the situation remains volatile, the market response to Iran’s attack on Israel highlights the interconnected nature of global events and their impact on commodity prices.