Oil prices lower after Iran attack on Israel
By Peter Hoskins & Nick Edser
Oil prices fell in early Asian trade after Iran’s reprisal attack on Israel over the weekend.
Brent crude – a key benchmark for oil prices internationally – was lower but still trading close to $90 a barrel on Monday morning.
Prices had already risen in expectation of action by Iran, with Brent crude nearing a six-month high last week.
Israeli Defence Minister Yoav Gallant has said the confrontation with Iran is “not over yet”.
“Clearly, the oil market does not see the need to factor in any additional supply threat at this point,” energy analyst Vandana Hari said.
Brent crude may well fall below the $90 mark, but a sizeable pullback is unlikely as traders remain focused on the risks associated with the conflicts in Gaza and Ukraine, she added.
Analysts also said Israel’s reaction to the attack will be key to global markets in the days and weeks ahead.
“I think we’ll see naturally volatility. If there was to be some sort of counter-move by Israel, then that would, I think, rocket energy markets very much to the upside,” Peter McGuire from trading platform XM.com told the BBC.
