Oil prices are expected to drop when trading resumes, following Israel's restrained airstrikes on Iranian military targets, which notably did not impact oil or nuclear facilities. Analysts suggest that the strikes, which targeted missile production sites, have reduced market uncertainty regarding further escalations in the region, allowing for a potential decrease in geopolitical risk premiums in oil prices. The Israeli military's actions come after a missile attack from Iran on October 1, marking the first time Israel has openly attacked Iran. Iran downplayed the strikes, claiming limited damage and suggesting that both nations are aiming to avoid a larger conflict. U.S. officials noted that Israel coordinated the strikes with them, emphasizing the focus on military targets only. The situation remains tense as both countries navigate the implications of these developments amidst ongoing violence in the Middle East.