Oil benchmarks fell early Monday, with Iran’s retaliatory attack against Israel already factored in by the market last week, but risks to supply disruptions in the Middle East remain high.
Tehran’s strike over the weekend—one of the largest combined aerial attacks in recent history with more than 300 drones and missiles—was the first direct attack on Israel from Iranian territory. The offensive caused limited damage, providing some comfort to the market, but fears of a broader regional conflict that could disrupt oil supplies through the Middle East are mounting.