China Fortune News on October 28th (Editor Xiao Xiang) Although Israel launched a new round of airstrikes against Iran over the weekend, market investors actually let go of their suspended hearts at the beginning of this week, because the targets of the Israeli attack did not include Iran's energy and nuclear facilities, which led to a sharp decline in crude oil prices on Monday, and safe-haven asset gold also fell slightly...

Market data shows that both oil benchmarks fell by more than 4% in early trading, with Brent crude plummeting to around $73 per barrel, and US WTI crude falling below $69 per barrel.

At the beginning of the Monday Asia session, the spot gold price also edged lower, trading around $2734 per ounce.

Israeli fighter jets attacked military targets inside Iran last Saturday, fulfilling their vow to retaliate against Iran's missile attacks earlier this month, but this attack was apparently more restrained than many had expected.

In the early hours of October 26th local time, explosions were suddenly heard in the Iranian capital, Tehran. Israeli military spokesperson Daniel Hagari later reported that Israeli warplanes precisely struck Iranian missile manufacturing facilities and other military targets on the 26th, and safely returned to Israel after completing the mission.

It is reported that Israel conducted three waves of airstrikes that day, lasting about four hours, deploying over a hundred different types of aircraft including F-35. The first wave of the Israeli attack targeted Iran's air defense systems, while the second and third waves focused on Iran's missile and drone bases and production facilities. Two Israeli officials anonymously disclosed that the targets of the attack did not include nuclear or oil facilities.

After Iran's missile strike on Israel earlier this month, the international community has actually been in a more tense state, fearing further escalation of regional conflicts. Iran's nuclear and oil facilities have been considered possible targets for Israel's retaliation. However, in the end, Israel did not rashly take action against these sensitive targets this time.

According to the Iranian side's report, Israeli warplanes 'violated international law' on the morning of the 26th, launching long-range air-to-surface missiles at radars near Iran's Ilam and Khuzestan provinces and the capital Tehran. Due to the timely response of the Iranian air defense system, the Iranian side suffered 'limited and minor' losses, with only multiple radar systems damaged, but four soldiers died in the attack.

Iran's verbal response this time was relatively restrained. The Iranian Armed Forces General Staff stated on the 26th that the Iranian side 'has the right' to respond to the Israeli military's airstrikes against Iran earlier in the day, but Iran 'prioritizes reaching a lasting ceasefire in Gaza and Lebanon.'

Following Israel's attack in the Middle East, a period of easing tensions may be expected instead of further escalation, so the significant lower opening of oil prices at the beginning of the day is apparently not surprising. Some analysts pointed out that the geopolitical risk premium in oil prices has gradually diminished as the expected retaliatory attacks from Israel have dissipated.

Saul Kavonic, an energy analyst at MST Marquee, expressed that the intensity of this attack was essentially limited, including avoiding oil infrastructure. This has instilled hope in people for a path to ease hostilities in the Middle East, especially if Iran refrains from retaliating in the coming days.

"Israel's attack avoided hitting energy infrastructure and was limited in scope. Limited strikes may alleviate concerns of direct conflict with Iran," noted Jay Hatfield, CEO of Infrastructure Capital Advisors, in a report on Sunday. "With the arrival of the winter heating and holiday season, we expect oil prices to rebound to the reasonable price range of $75-95 that we estimate."

However, Price Futures Group's senior market analyst Phil Flynn still warns that concerns about the supply of oil in the Persian Gulf region have not subsided.

"The bottom line of the oil market is that the direct threat of supply disruption has been temporarily set aside. From a broader perspective, if you think this attack will end hostilities, I don't think so... Even though Iran says they won't respond, I believe Iran will try to reassemble their proxies and respond in some way," he stated in a report on Sunday.

Editor/ping