As of 1302 GMT, Brent crude was down $4.80 (6.31%) to $71.25 per barrel, while West Texas Intermediate (WTI) fell $4.78 (6.7%) to $67.00 per barrel.
The decline followed a week of volatility, where prices had risen by 4% amid concerns over geopolitical tensions and the upcoming U.S. elections. Israel’s recent airstrikes, aimed at missile production facilities in Iran, eased the previously heightened geopolitical risk premium that had pushed oil prices up in anticipation of potential conflicts affecting energy supplies.
While Iranian officials have threatened to respond to the strikes, the immediate market reaction has been a significant drop in oil prices, indicating that traders are currently less concerned about disruptions to oil supply in the region.
