Oil Prices Fall After Israel-Iran Tension Eases

Crude oil prices experienced a significant drop of over 4% as Israel launched a limited strike on Iranian military targets, sparing its oil and nuclear facilities, which eased geopolitical tensions and supply disruption fears. Israel's restrained response, coordinated with Washington, targeted missile production sites in Iran, following Iran's earlier missile attacks on Israel. This move, seen as a de-escalation, calmed markets and allowed stock futures to rally, as investors priced out some geopolitical risks. Analysts suggest that the reduced risk premium may deflate oil prices further, though the overall trend of Middle Eastern tensions remains a potential factor for future price fluctuations. Despite Iran's moderate damage claims, the restrained nature of the strikes and Iran's non-escalatory stance may facilitate diplomatic efforts to mitigate further conflict.