Iran-Israel hostilities: Oil prices fall after Iranian attack escalates tensions
Iran attacks Israel: Asian markets began the week on a cautious footing, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 0.7 per cent.
- Apr 15, 2024,
- Updated Apr 15, 2024 9:36 AM IST
Iran attacks Israel: Oil prices fell on Monday after Iran’s attack on Israel early Sunday. Even as the Israeli government said the attack caused limited damage, tensions have escalated in the region, pushing market participants to dial back risk premiums.
Brent futures for June delivery fell 20 cents or 0.2 per cent, to $90.25 a barrel while West Texas Intermediate (WTI) futures for May delivery were down 33 cents or 0.4 per cent, at $85.33 a barrel by 0225 GMT.
Meanwhile, Asian shares slumped and gold prices rose as risk sentiment took a hit. Dollar scaled a fresh 34-year high against the yen, as the attack stoked fears of a wider regional conflict.
Asian markets began the week on a cautious footing, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 0.7 per cent. Sensex, Nifty and key sectoral indices crashed on Monday morning. Japan's Nikkei slid more than 1 per cent, Australia's S&P/ASX 200 index lost 0.6 per cent, and Hong Kong's Hang Seng Index slumped 0.8 per cent.
Moreover, the Israel-Iran conflict pushed gold 0.51 per cent to $2,356.39.
Iran attacked Israel with more than 300 missiles and drones as retaliation for an air strike on its Damascus consulate that led to the death of top Revolutionary Guards commanders. These missiles and drones were shot down by Israel’s Iron Dome defence system, and with the help of the US, Britain, France and Jordan.
Israel is already at war with Hamas militants in Gaza, and has neither confirmed nor denied the Damascus consulate attack.
Iran produces over 3 million barrels per day (bpd) of crude oil and is the fourth-largest producer within the Organization of the Petroleum Exporting Countries (OPEC). Oil sanctions and a possible retatliation by Israel on Iran’s energy infrastructure could lead to supply risks.
ING in a client note on Monday said if there was any significant supply loss, the US could release further crude oil from its strategic petroleum reserves, while OPEC has over 5 million bpd of spare production capacity.
(With Reuters inputs)
Iran attacks Israel: Oil prices fell on Monday after Iran’s attack on Israel early Sunday. Even as the Israeli government said the attack caused limited damage, tensions have escalated in the region, pushing market participants to dial back risk premiums.
Brent futures for June delivery fell 20 cents or 0.2 per cent, to $90.25 a barrel while West Texas Intermediate (WTI) futures for May delivery were down 33 cents or 0.4 per cent, at $85.33 a barrel by 0225 GMT.
Meanwhile, Asian shares slumped and gold prices rose as risk sentiment took a hit. Dollar scaled a fresh 34-year high against the yen, as the attack stoked fears of a wider regional conflict.
Asian markets began the week on a cautious footing, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 0.7 per cent. Sensex, Nifty and key sectoral indices crashed on Monday morning. Japan's Nikkei slid more than 1 per cent, Australia's S&P/ASX 200 index lost 0.6 per cent, and Hong Kong's Hang Seng Index slumped 0.8 per cent.
Moreover, the Israel-Iran conflict pushed gold 0.51 per cent to $2,356.39.
Iran attacked Israel with more than 300 missiles and drones as retaliation for an air strike on its Damascus consulate that led to the death of top Revolutionary Guards commanders. These missiles and drones were shot down by Israel’s Iron Dome defence system, and with the help of the US, Britain, France and Jordan.
Israel is already at war with Hamas militants in Gaza, and has neither confirmed nor denied the Damascus consulate attack.
Iran produces over 3 million barrels per day (bpd) of crude oil and is the fourth-largest producer within the Organization of the Petroleum Exporting Countries (OPEC). Oil sanctions and a possible retatliation by Israel on Iran’s energy infrastructure could lead to supply risks.
ING in a client note on Monday said if there was any significant supply loss, the US could release further crude oil from its strategic petroleum reserves, while OPEC has over 5 million bpd of spare production capacity.
(With Reuters inputs)