Oil slides by nearly 6% after Israeli retaliatory attack on Iran

29 Oct 2024 CW Team

The benchmarks had risen by 4% the previous week amid volatile trading, reflecting uncertainty around the upcoming U.S. election and Israel's anticipated response to an Iranian missile attack on October 1. Before dawn on Saturday, dozens of Israeli jets carried out three waves of strikes on missile factories and other sites near Tehran and in western Iran, marking the latest confrontation between the two countries.

Analysts noted that the geopolitical risk premium factored into oil prices ahead of Israel's attack had decreased. John Evans at PVM suggested that Israel’s response was strongly influenced by the Biden administration as the U.S. election approaches. Meanwhile, Commonwealth Bank of Australia analyst Vivek Dhar expressed doubts about a swift de-escalation in Middle Eastern tensions, stating that although Israel’s response to Iran was measured, it is unlikely that a lasting ceasefire with Iranian proxies, Hamas and Hezbollah, is imminent.

Citi has adjusted its Brent price target for the next three months, lowering it from $74 to $70 per barrel due to the reduced risk premium in the short term, as explained by analysts led by Max Layton. Additionally, Panmure Liberum analyst Ashley Kelty observed that rhetoric from OPEC+ ministers regarding production quotas will play a significant role in price trends, with potential delays to production increases looking more likely given the soft market outlook and high break-even prices required by most cartel members.

Oil prices dropped by over $4 per barrel on Monday, as Israel's weekend strikes on Iran avoided oil and nuclear sites, leaving energy supplies unaffected. Both Brent and U.S. West Texas Intermediate crude fell to their lowest levels since the start of the month. By 1130 GMT, Brent had fallen by $4.28, or 5.6%, to $71.77 per barrel, while WTI dropped by $4.25, or 5.9%, to $67.53. The benchmarks had risen by 4% the previous week amid volatile trading, reflecting uncertainty around the upcoming U.S. election and Israel's anticipated response to an Iranian missile attack on October 1. Before dawn on Saturday, dozens of Israeli jets carried out three waves of strikes on missile factories and other sites near Tehran and in western Iran, marking the latest confrontation between the two countries. Analysts noted that the geopolitical risk premium factored into oil prices ahead of Israel's attack had decreased. John Evans at PVM suggested that Israel’s response was strongly influenced by the Biden administration as the U.S. election approaches. Meanwhile, Commonwealth Bank of Australia analyst Vivek Dhar expressed doubts about a swift de-escalation in Middle Eastern tensions, stating that although Israel’s response to Iran was measured, it is unlikely that a lasting ceasefire with Iranian proxies, Hamas and Hezbollah, is imminent. Citi has adjusted its Brent price target for the next three months, lowering it from $74 to $70 per barrel due to the reduced risk premium in the short term, as explained by analysts led by Max Layton. Additionally, Panmure Liberum analyst Ashley Kelty observed that rhetoric from OPEC+ ministers regarding production quotas will play a significant role in price trends, with potential delays to production increases looking more likely given the soft market outlook and high break-even prices required by most cartel members.

Building Material

23 Oct 2025

Tata Steel, Air Water India Ink 20-Year Deal for Jamshedpur ASU

Tata Steel has signed a 20-year agreement with Air Water India Private Limited (AWIPL) to operate and maintain its advanced Air Separation Unit (ASU) in Jamshedpur. The partnership aims to boost Tata Steel’s industrial gas infrastructure and improve efficiency through the use of cutting-edge cryogenic technologies. The agreement was signed between Peeyush Gupta, Vice President (TQM, GSP & SC), Tata Steel, and Kausik Mukhopadhyay, Managing Director, AWIPL. Under the contract, AWIPL will manage operations of the ASU, which can produce 1,800 tonnes of oxygen per day, along with nitrogen, argon..

Infrastructure Urban

23 Oct 2025

PM Modi Inaugurates and Lays Foundation for Projects in Andhra Pradesh

Prime Minister Narendra Modi inaugurated and laid the foundation stones for multiple projects worth Rs 134.3 billion in Andhra Pradesh. The initiatives span key sectors including infrastructure, energy, and urban development, aimed at boosting regional growth and job creation.In Visakhapatnam, the Prime Minister dedicated several completed infrastructure projects to the nation, while in Nandyal and West Godavari, he laid foundations for renewable energy and water resource developments. These projects align with the government’s focus on improving connectivity, expanding industrial potential,..

Infrastructure Transport

23 Oct 2025

MSRDC to Monetise Land Assets to Finance Key Infrastructure Projects

The Maharashtra State Road Development Corporation (MSRDC), led by Chief Minister Eknath Shinde, plans to monetise its land holdings to fund future infrastructure projects. The Corporation intends to lease land parcels for up to 99 years, with some earmarked for joint development or sale.MSRDC has been designated as the special planning authority for several strategic regions, including 19 growth centres along the Mumbai–Goa Expressway, 18 nodes on the Samruddhi Mahamarg, and development zones near the Pune Outer Ring Road, Shaktipeeth Highway, and Mumbai–Pune Expressway.The agency is prio..