(MENAFN) In Asian market trading on Monday, oil prices experienced a downturn as market participants dialed back risk premiums in the wake of an Iranian attack on Israel late Saturday, which the Israeli government reported as causing limited damage. Brent crude futures for June delivery dropped by 28 cents, representing a 0.3 percent decrease to USD90.17 per barrel, while West Texas Intermediate crude futures for May delivery fell by 40 cents, equivalent to a 0.5 percent decline, to USD85.26 per barrel by 0309 GMT.
The attack, characterized by the launch of over 300 missiles and drones, marked the first instance of Israel being targeted from another country in more than three decades, sparking concerns of a potentially broader regional conflict that could disrupt oil movement across the Middle East. However, despite these fears, the impact was relatively contained as Israel's Iron Dome defense system intercepted the majority of incoming missiles. Israel neither confirmed nor denied responsibility for the attack on the Iranian consulate, which Iran cited as the reason for its retaliatory strike.
Oil prices had initially surged on Friday amid anticipation of Iran's response to the consulate incident, reaching their highest levels since October. However, by the end of the week's trading sessions, prices had retreated by one percent following the International Energy Agency's downward revision of its oil demand growth forecast for the year. This recalibration reflects ongoing market sensitivity to geopolitical tensions and demand-supply dynamics, which continue to shape oil price movements amidst global uncertainties.
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