The price of a barrel of Brent crude oil, which rose to $75.74 on Friday, was unable to hold at this level and ended the day at $75.55, down by about 4 percent compared to today’s close at 09:34 to reach $72.55, while West Texas Intermediate crude was sold at $68.53 per barrel.
The decline in oil prices is due to the fact that the Israeli air strike on Iran was not as severe as feared, and the risk perception in global markets has declined.
There were fears that Israel would launch a major attack on Iran in the Middle East, where most of the oil resources are located, and that the conflict would spread to a wide area and negatively affect oil supplies, causing oil prices to rise for a period of time. The fact that the attack was lighter than expected and that the Israeli air strike on Iran did not affect oil facilities supports the decline in prices.
Israel announced that it had launched an attack on military targets in Iran on October 26 in “response” to Iranian missile attacks on October 1 and that the attack had been completed “successfully.”
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Iran announced that it had targeted some military points in Tehran and the western provinces of Khuzestan and Ilam, and that its air defense systems had “successfully” resisted the attacks but that “limited damage” had occurred at some points.
In response, Iranian President Masoud Pezeshkian said that they do not want war but will protect their rights and respond appropriately to Israeli aggression.
In addition, the rise in the US dollar against other currencies also contributed to the decline in oil prices, with the US dollar index rising by 0.19 percent to 104.32, and the rise in the dollar is expected to reduce demand by making oil more expensive for foreign currency users.
On the other hand, global markets will follow the economic data that will be announced in the United States this week, as analysts stated that the signals that will be received from the employment and growth data scheduled to be announced this week may be decisive in the steps that the US Federal Reserve will take in the coming period, and they said that the data in question is expected to provide more information about the path of the US economy.
It is worth noting that technically, the $80.03 level can be seen as resistance and $71.34 as support for Brent oil.
