According to the Sina Finance app, there are reports that Israel may avoid attacking Iran's crude oil infrastructure, easing concerns about the tense situation in the Middle East, and oil prices continue to fall. Crude oil WTI fell 2.3% on Monday to around $72 per barrel, while Brent crude oil fell by 4.0% intraday, closing near $77 per barrel.

The media cited two informed officials as saying that Israeli Prime Minister Benjamin Netanyahu told the Biden administration that he hopes to target Iran's military facilities rather than oil or nuclear facilities.

Rohan Reddy, Director of International Business Development and Corporate Strategy at Global X Management, said: "The current market's reaction may be to increase or decrease the geopolitical risk premium for oil."

In recent weeks, crude oil prices have been on a roller coaster ride as traders have been watching the prospect of escalating conflict in the Middle East. Israel has vowed to harshly retaliate against Iran's missile attack on October 1. Due to the geopolitical situation threatening oil production in the region, which supplies about one-third of the world's oil, WTI crude oil prices have risen by about 5% this month.

Concerns about demand are putting pressure on oil prices. Adding to the woes, OPEC has lowered its global oil demand expectations for the current and next year for the third consecutive month. The report shows that OPEC has lowered the expected growth in global daily oil demand for 2024 from 2.03 million barrels to 1.93 million barrels, with the revised annual average daily oil demand estimated to be around 0.104 billion barrels.