An anti-missile system works after Iran launched drones and missiles toward Israel, photo taken from Ashkelon, Israel April 14, 2024.
Amir Cohen | Reuters
US crude oil futures fell slightly on Sunday as traders breathed a sigh of relief after Israel fended off a large-scale air attack by Iran and the US stressed it wanted to avoid a wider war. in the Middle East.
The West Texas Intermediate contract for May lost 34 cents to $85.32 a barrel when trading began Sunday evening. Brent oil futures for June decreased slightly to 90.18 USD/barrel. US crude oil closed at $85.66 a barrel on Friday, while global benchmark oil prices were steady at $90.45. WTI futures started the year at around $71/barrel.
Iran launches more than 300 drones and missiles against military targets in Israel on Saturday in an attack that President Joe Biden described as “never happend.” Mr. Biden said in a statement Saturday that the United States intervened to directly help Israel shoot down almost all of the incoming munitions.
Despite its significant scale, the Iranian attack caused little actual damage in Israel. Israel Defense Forces spokesman Daniel Hagari said Nevatim air base in southern Israel was slightly damaged and a 10-year-old girl was seriously injured.
John Kilduff, energy expert and founding partner at Again Capital, said: “A series of airborne weapons were so easily removed from the sky that the whole thing appeared to have been carefully planned to make a statement without causing further conflict with Israel.”
According to Jorge Leon, senior vice president at Rystad Energy, the crude oil market is now preparing for the Netanyahu government’s response to the attack and whether this will mark the beginning of a direct war between Israel and Iran or not.
“In a worst-case scenario, strong Israeli retaliation could trigger an escalatory spiral, potentially leading to an unprecedented regional conflict,” Leon said on Sunday. “Under such circumstances, geopolitical premiums will increase significantly.”
Senior US military officials told reporters in a call on Sunday that the airstrike was Iran’s first direct attack on Israeli territory. Officials said the attack was launched from locations in Iran, Iraq, Syria and Yemen. More than 100 ballistic missiles as well as land-attack cruise missiles and drones were fired at Israel, a senior administration official said.
The attack was 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. , die.
Both the US and Iran seem determined to avoid further escalation. A senior administration official said Biden told Prime Minister Benjamin Netanyahu that his commitment to Israel’s security was firm but that the United States would not engage in offensive operations against Iran. told NBC News.
US National Security spokesman John Kirby told NBC News’ “Meet the Press” on Sunday that Biden does not want to expand relations with Iran. “The coming hours and days will tell us much,” Kirby said.
Iran has described the attack as a limited operation in which the Islamic Republic exercised its legal right to self-defense following a missile attack on its diplomatic premises.
“The matter can be considered closed”, Iran delegation at the United Nations said on X. However, if the Israeli government makes another mistake, Iran’s response will be significantly harsher.”
Iran’s delegation to the United Nations warned the US not to interfere with the same message: “It is a conflict between Iran and the rogue regime of Israel, which America MUST STAY AWAY from!”
Israeli Foreign Ministry spokesman Lior Haiat said on Sunday that “Iran must pay the price for its aggression”. The Islamic Revolutionary Guard Corps should be immediately declared a terrorist organization, Haiat said.
“In the face of Iran’s major attack, Israel, like every country, has the right to self-defense and Israel has defended and will continue to defend itself against Iranian aggression,” Haiat said above. social media platform “X.”
— by CNBC Pippa Stevens contributed to this report.
