WTI Futures Break Below $70 Per Barrel
As the military conflict between Israel and Iran entered a 'breather' phase, international oil prices plummeted by more than 4%. Israel launched retaliatory airstrikes targeting military bases rather than Iran's oil facilities, and Iran indicated that it would not respond immediately to these actions.
According to Investing.com on the 28th, the December delivery West Texas Intermediate (WTI) crude oil futures, the nearest contract, were trading at $68.63 per barrel around 10 a.m., down 4.4% from the previous session.
The global benchmark Brent crude oil futures for January delivery were also down 4.24% at $72.41 per barrel at the same time.
Last week, WTI and Brent crude futures showed significant volatility, rising about 4% amid concerns over Israel's potential airstrikes on Iran and uncertainties surrounding the U.S. presidential election.
The sharp drop in international oil futures on this day was driven by growing analysis that Israel and Iran were minimizing the possibility of full-scale war. Over the weekend, Israel conducted large-scale retaliatory airstrikes against Iran, but targeted military facilities rather than nuclear or oil infrastructure. In response, Iran adopted a restrained tone, stating it would "respond at an appropriate time" rather than declaring immediate retaliation.
Tony Sycamore, a market analyst at IG in Sydney, said, "Reports that Israel is not attacking oil infrastructure and that Iran will not respond to the attacks have removed elements of uncertainty." Harry Chiltingurian, head of research at Onyx Capital Group, added, "With the uncertainty surrounding Israel's expected response resolved, the market can now breathe a big sigh of relief."
However, some experts emphasize that the risk of escalation in the Middle East has not subsided, so the possibility of rising oil prices remains. Phil Flynn, senior market analyst at Price Futures Group, stated, "Although Iran has said it will not respond to Israel's retaliatory airstrikes, I believe Iran will mobilize proxies to respond in some way."
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