Mon Oct 28 03:47:35 UTC 2024: ## Oil Prices Expected to Dip as Israel’s Iranian Strikes Sparked No Energy Disruptions
**Sydney, Australia** – Oil prices are expected to fall when trading resumes on Monday, following Israel’s retaliatory strikes on Iranian military sites that targeted neither oil infrastructure nor nuclear facilities, analysts predict.
The strikes, which were carried out in response to a recent Iranian missile attack, initially caused a surge in oil prices last week due to market uncertainty surrounding Israel’s response. However, with the strikes completed and Iran seemingly downplaying the damage, analysts now believe the risk premium built into oil prices will deflate.
“The market can breathe a big sigh of relief,” said Harry Tchilinguirian, group head of research at Onyx, on LinkedIn. “The known unknown that was Israel’s eventual response to Iran has been resolved.”
Tony Sycamore, IG market analyst in Sydney, added, “Israel’s not attacking oil infrastructure, and reports that Iran won’t respond to the strike remove an element of uncertainty.”
Sycamore expects a “buy the rumour, sell the fact” reaction when markets reopen, potentially pushing WTI crude back towards $70 a barrel. Tchilinguirian also anticipates a decline, with Brent crude heading back towards $74-$75 a barrel.
While UBS commodity analyst Giovanni Staunovo agrees with the expectation of a downward trend on Monday, he believes it will be temporary. “I believe the market didn’t price a large risk premium,” he said.
The strikes, which took place before dawn on Saturday, were carried out by scores of Israeli jets targeting missile factories and other sites near Tehran and western Iran.
Despite the incident, the U.S. administration, which is in the midst of an election cycle, appears to be satisfied with the outcome, given the lack of any disruption to energy supplies.
First Piper 