Markets.com Logo
euEnglish
LoginSign Up

Oil prices dip on easing risk premium after Iran attack

Apr 15, 2024
3 min read
Table of Contents
  • 1. Markets downplay risk of regional escalation after Iran attack, oil prices retreat 
  • 2. Middle East concerns appear to cool as Iran declares “matter concluded” 
  • 3. ING says oil prices had adjusted to reflect Iran attack beforehand 

Oil prices slipped by 1% on Monday as markets downplayed Middle East tensions

 

Markets downplay risk of regional escalation after Iran attack, oil prices retreat 

Oil prices slipped by close to 1% on Monday, reflecting reduced concerns of a regional escalation in the Middle East following Iran's attack on Israel over the weekend. 

Brent crude futures for June delivery dropped by 99 cents to $89.46 a barrel by mid-morning, while West Texas Intermediate (WTI) for May delivery decreased by $1.05 to $84.61. 

The fall follows a surge on Friday, where oil prices reached their highest point since October in anticipation of Iran's retaliatory strike, which involved over 300 missiles and drones, and was the first attack by on Israel by another country in over thirty years.  

The attack initially stoked fears of a wider regional conflict potentially disrupting oil flows through the Middle East. 

 

 

Middle East concerns appear to cool as Iran declares “matter concluded” 

However, sentiments appeared to cool after Iran declared the retaliation complete (“the matter can be deemed concluded”) suggesting a lower risk of further immediate conflict, according to a comment from Kpler analyst Viktor Katona shared with Reuters.  

John Evans from the oil broker PVM described the attack "about as telegraphed a world event that people can remember”, indicating that markets — and oil prices — had time to adjust to such a scenario. 

"They might as well have had big disco lights on them and towed banners with ‘come on ladies and gentlemen, please shoot me down’”, Evans told Reuters. 

 

Iran declared the retaliation complete

 

ING says oil prices had adjusted to reflect Iran attack beforehand 

The assault, described by Iran as a response to an airstrike on its consulate in Damascus, resulted in minimal damage, largely thwarted by Israel's Iron Dome defense system. 

Warren Patterson, head of commodities strategy at ING, commented on the developments’ impact on oil prices in the latest edition of the bank’s daily Commodities Feed: 

"The market had already priced in some form of attack, while limited damage and no loss of life means the potential for a more measured response from Israel. How Israel responds is now the key uncertainty. [...] 

While risks are clearly elevated, which should keep oil prices relatively well supported, oil supply remains intact for now. Therefore, we are leaving our ICE Brent forecast unchanged at US$87/bbl for the second quarter, until there is some clarity on how events play out”. 

Iran produces over 3 million barrels per day as major producer within the Organization of the Petroleum Exporting Countries (OPEC). So far, the ongoing tensions in the Middle East, particularly surrounding the Israel-Hamas conflict in Gaza, have not significantly impacted oil supply. 

"If the crisis does not escalate to a point that creates supply disruptions, then there will be downside risk over time, but only once it becomes clear Israel has chosen a measured response," Amrita Sen, founder and director of research at Energy Aspects, told Reuters. 

 


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. 


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Georgy Istigechev
Written by
Georgy Istigechev
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    0.18%
  • EUR/USD

    chartpng

    --

    -0.56%
  • Cotton

    chartpng

    --

    0.49%
  • AUD/USD

    chartpng

    --

    -0.41%
  • Santander

    chartpng

    --

    -1.36%
  • Apple.svg

    Apple

    chartpng

    --

    1.23%
  • easyJet

    chartpng

    --

    0.23%
  • VIXX

    chartpng

    --

    -1.56%
  • Silver

    chartpng

    --

    -1.17%
Tags DirectoryView all
Table of Contents
  • 1. Markets downplay risk of regional escalation after Iran attack, oil prices retreat 
  • 2. Middle East concerns appear to cool as Iran declares “matter concluded” 
  • 3. ING says oil prices had adjusted to reflect Iran attack beforehand 

Related Articles

US Inflation & Tariffs: Will the Fed Hike Rates?

June report reveals a slight acceleration in US inflation, raising questions about the impact of tariffs on consumer prices. The Federal Reserve is closely monitoring these developments.

Emma Rose|about 6 hours ago

Mnuchin Suggests Powell Resign from Fed Board After Chairmanship

Treasury Secretary Mnuchin suggests Powell leave his Fed board seat after his chairmanship to avoid potential market confusion. Trump seeks a Fed chair who supports his economic agenda.

Emma Rose|about 7 hours ago

Trump Encouraged Ukraine to Strike Deep Inside Russia: A Shift in Strategy and Potential Escalation

According to reports, former US President Donald Trump encouraged Ukraine to conduct deep strikes inside Russian territory. This shift in stance, if confirmed, could lead to a significant escalation in the Russia-Ukraine conflict.

Emma Rose|about 9 hours ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.