Oil Prices Drop as Israel's Limited Strike on Iran Eases Market Fears

Israel's recent military action avoided Iran's oil facilities, calming concerns of a major supply disruption.

Oil prices fell over 6% after Israel's military strikes on Iran targeted military sites and spared oil infrastructure.
The geopolitical risk premium in oil prices decreased as fears of a wider Middle East conflict eased.
Israel's restraint in the attack was reportedly influenced by U.S. diplomatic efforts to avoid escalation.
The U.S. plans to refill its Strategic Petroleum Reserve, providing some support to oil prices amid demand concerns.
OPEC+ is set to increase oil production in December, further impacting market dynamics amid ongoing sluggish demand.