Oil prices dropped in early Asian trading following Iran’s retaliatory strike on Israel over the weekend.
Brent crude, a significant gauge for global oil prices, dipped but remained close to $90 per barrel on Monday morning. Prices had surged in anticipation of Iran’s actions, with Brent crude reaching nearly a six-month high last week.
Israeli Defence Minister Yoav Gallant emphasized that the conflict with Iran is ongoing. “The oil market currently seems unconcerned about any additional threat to supply,” noted energy analyst Vandana Hari.
While Brent crude might dip below $90, a substantial decrease is unlikely as traders continue to monitor the risks stemming from conflicts in Gaza and Ukraine, Hari added.
Analysts highlighted Israel’s response to the attack as crucial for global markets in the coming days and weeks. Peter McGuire of trading platform XM.com anticipated volatility in the energy market and suggested that oil prices would soar if Israel responded forcefully to Iran’s actions.
In the Asia-Pacific region, share markets declined on Monday as investors assessed the impact of the attack. The Hang Seng in Hong Kong, Japan’s Nikkei 225, and South Korea’s Kospi all saw decreases, while China’s Shanghai Stock Exchange Composite rose by more than 1%.