Oil Prices Slide Over 4% as Middle East Tensions Ease

Oil prices fell sharply on Monday, with both Brent and U.S. West Texas Intermediate (WTI) crude futures dropping over 4% after Israel’s weekend strike on Iran bypassed key oil and nuclear facilities. This less severe escalation eased concerns about disruptions to Middle Eastern energy supplies, leading to a price drop.

At the open, both benchmarks hit their lowest levels since October 1, with Brent down $3.35 (4.4%) at $72.70 per barrel and WTI down $3.27 (4.6%) at $68.51 per barrel as of 01:39 GMT. Last week, oil prices had gained 4% amid volatile trading, largely due to the uncertainty around the October 1 Iranian missile attack and the upcoming U.S. elections.

The recent wave of Israeli strikes targeted missile factories and other sites in Iran, sparking renewed focus on potential de-escalation talks. Analysts, including Commonwealth Bank of Australia’s Vivek Dhar, suggested that market focus may now shift toward ongoing ceasefire discussions between Israel and Hamas, potentially reducing geopolitical risk premiums on oil.