Oil Updates: as Iran Downplays the Purported Israeli Attack, Prices Decline

Oil Updates: as Iran Downplays the Purported Israeli Attack, Prices Decline

LONDON: After earlier rising more than $3, oil fell on Friday as Iran downplayed reports of Israeli attacks on its territory, suggesting that a potential escalation of hostilities in the Middle East may be averted, according to Reuters.

By 2:55 p.m. Saudi time, Brent futures were down 48 cents, or 0.6 percent, at $86.63 per barrel. At $82.35, the most traded US West Texas Intermediate contract saw a decrease of 38 cents, or 0.5 percent.

In a move that might allay fears that the situation could worsen and turn into a regional conflict, Tehran downplayed the explosions that were heard in the Iranian city of Isfahan on Friday, which reports claimed were the result of an Israeli attack.

In retaliation for an alleged Israeli airstrike on April 1 that destroyed a building in Iran’s embassy compound in Damascus and killed several senior Iranian commanders, Iran launched a volley of drone strikes and ballistic missiles against Israel on Saturday.

According to Joshua Mahony, chief market analyst at Scope Markets, “we have seen both equities and crude reverse some of those preliminary moves, even though the initial spike in oil may have highlighted the initial fear of further escalation. It seems that the recent events have less to do with trying to start a conflict and more to do with demonstrating their preparedness to act…This is the best-case scenario for markets.

Also Read:

The Finance Minister of Egypt says Reducing Inflation is a Top Concern.    

Iran’s Drone Program faces Broad Penalties Unveiled by the US and UK. 

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