Oil prices fall after Israel repels massive Iranian airstrikes | Wilnesh News

U.S. crude oil futures fell on Monday as traders breathed a sigh of relief as Israel repelled a massive Iranian airstrike and the U.S. stressed its desire to avoid a wider war in the Middle East.

this West Texas Intermediate crude oil May contract It fell 99 cents to $84.67 a barrel. June Brent Crude Oil Futures It fell 92 cents to $89.53 a barrel. U.S. crude settled at $85.66 a barrel on Friday, while the global benchmark settled at $90.45 a barrel. WTI futures started the year at about $71 a barrel.

Iran launched more than 300 drones and missiles at Israeli military targets on Saturday, an attack President Joe Biden called “Unprecedented.” In a statement on Saturday, Biden said the United States intervened to directly help Israel shoot down nearly all incoming munitions.

Despite the scale of Iran’s attacks, they have done little actual damage to Israel. Israel Defense Forces spokesman Daniel Hagari said the Nevatim air base in southern Israel suffered minor damage and a 10-year-old girl was seriously injured.

John Kilduff, an energy expert and founding partner of Again Capital, said: “The salvo of air weapons fell from the sky so easily and the entire incident appeared to have been carefully planned to not trigger further conflict with Israel. Make a statement under the circumstances.

Jorge Leon, senior vice president at Rystad Energy, said the crude market is now awaiting the Netanyahu government’s response to the attack and whether it marks the beginning of a direct war between Israel and Iran.

“In a worst-case scenario, strong Israeli retaliation could trigger an escalation and could lead to an unprecedented regional conflict,” Leon said in a report on Sunday. “In such a scenario, the geopolitical premium would be substantial. Increase.”

The strike was Iran’s first direct attack on Israeli territory, a senior U.S. military official told reporters by phone on Sunday. Officials said the attack was launched from Iran, Iraq, Syria and Yemen. A senior administration official said more than 100 ballistic missiles, as well as land-attack cruise missiles and drones, were fired at Israel.

The attack was in retaliation for an Israeli attack on the Islamic Republic’s diplomatic facilities in Damascus, Syria, earlier this month that killed seven Iranian military officials, including a senior commander.

Both the United States and Iran appear determined to avoid further escalation.A senior administration official Biden told Prime Minister Benjamin Netanyahu that his commitment to Israel’s security is ironclad but that the United States will not participate in attacks against Iran told NBC News.

National security spokesman John Kirby said on NBC News’ “Meet the Press” on Sunday that Biden does not want a broader relationship with Iran. “The next few hours and days will tell us a lot,” Kirby said.

Iran said the attack was a limited exercise of the Islamic Republic’s legitimate right to self-defense after missile attacks on its diplomatic facilities.

Iran said: “The matter can be considered over” The Mission to the United Nations stated on X day. “However, if the Israeli regime makes another mistake, Iran’s response will be even harsher.”

The Iranian mission to the United Nations also warned the United States not to intervene: “This is a conflict between Iran and the rogue Israeli regime, and the United States must stay away!”

Israeli Foreign Ministry spokesman Lior Hayat said on Sunday that “Iran must pay the price for its acts of aggression.” Hayat said the Islamic Revolutionary Guard Corps should be declared a terrorist organization immediately.

“In response to large-scale attacks by Iran, Israel, like every country, has the right to defend itself, and Israel has and will continue to defend itself against Iranian aggression,” Hayat said in a statement. social media platform “X.”

— CNBC Pippa Stevens contributed to this report.