Oil prices fall as Israel may avoid striking Iranian nuclear, oil sites
Date
10/16/2024 5:17:58 AM
(MENAFN) Oil rates dropped by more than 3 percent on Tuesday after a report suggested that Israeli Prime Minister Benjamin Netanyahu informed U.S. President Joe Biden of his plans to strike Iran's military infrastructure, rather than its nuclear or oil facilities. This comes in response to Tehran's recent launch of approximately 200 ballistic missiles at Israel, as reported by a French news agency. The report triggered a significant market reaction, leading to a drop in oil rates.
Brent crude for December delivery saw a decline of 3.05 percent, bringing the price per barrel down to USD75.10 at 2:20 GMT. Similarly, West Texas Intermediate (WTI) crude for November delivery fell by 3.05 percent, reaching USD71.55 per barrel. These sharp declines reflect market concerns about potential geopolitical instability in the region, particularly regarding the conflict between Israel and Iran.
The American newspaper that broke the news reported that Netanyahu and Biden had a phone conversation on Wednesday, marking their first direct communication in over seven weeks. Two sources familiar with the discussion, one of whom is American and wished to remain anonymous, confirmed the details of the conversation, indicating that Netanyahu outlined his intention to focus on Iran's military targets in response to the recent missile attack.
During the call, Netanyahu reportedly assured Biden that his planned strikes would not target Iran's nuclear or oil infrastructure, which are considered sensitive areas. This comes after Biden had previously cautioned Netanyahu against hitting Iran's nuclear or oil facilities, emphasizing the potential risks such actions could pose to broader regional stability.
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