Oil prices are anticipated to decrease when trading resumes Monday, as Israel's recent airstrike on Iran avoided Tehran's oil and nuclear facilities, leaving energy supplies unaffected, analysts said.
Last week, Brent and U.S. West Texas Intermediate (WTI) crude futures rose by 4% amid uncertainty over Israel's potential response to an Iranian missile attack on October 1 and concerns regarding the upcoming U.S. election. However, with Israel's action over the weekend targeting only missile factories and other military sites near Tehran and western Iran, markets are expected to stabilize.
Harry Tchilinguirian, head of research at Onyx, noted that the market "can breathe a big sigh of relief" now that Israel's response is complete, alleviating a major source of unpredictability.
The airstrike, conducted in three waves by Israeli jets before dawn on Saturday, came after U.S. Secretary of State Antony Blinken’s departure from the region. Observers believe the timing may have reduced the potential for further escalation.
Iran downplayed the attack, stating it caused minimal damage. With Israel choosing not to target oil infrastructure, the likelihood of Iran retaliating is reduced, according to IG market analyst Tony Sycamore. He suggested this could trigger a "buy the rumor, sell the fact" reaction in crude oil markets, with WTI potentially moving back to around $70 per barrel.
Iran Asserts Right to Defend as Tensions Escalate Following Israeli Strikes
Israeli Airstrikes Devastate Northern Gaza Amid Growing Global Outcry
Inside Israel's Precision Strikes on Iran: What Sparked the Latest Tensions?