Oil prices drop 5%

Oil prices fell over 5 per cent as Israeli airstrikes on Iran over the weekend avoided key crude infrastructure, reducing immediate risks to regional supply. Brent slipped below $73 per barrel, while West Texas Intermediate (WTI) neared $68 after retracing some losses.

The restrained strikes, aimed solely at military sites, were seen as proportionate by analysts, easing fears of escalated Middle East tensions.

Citigroup lowered its Brent forecasts, highlighting lessened geopolitical risks, while market focus shifts back to ample supply and concerns over weak Chinese demand. Tehran reported normal oil industry operations, and Iran has not pledged retaliation.

OPEC+ remains on track to gradually increase production from December, with an upcoming policy meeting set for Dec. 1. Meanwhile, Brent volatility remains elevated as traders closely monitor Middle Eastern developments.

Attribution: Reuters

Subediting: M. S. Salama