Oil prices lower after Iran attack on Israel


Oil prices dropped in early trading in Asia after Iran’s attack on Israel over the weekend.

Brent crude, a type of oil used to set international prices, was down but still close to $90 per barrel on Monday morning.

Before Iran’s attack, oil prices had gone up because people expected Iran to take action. Last week, Brent crude reached its highest level in six months.

Israel’s Defence Minister said the situation with Iran is not finished yet.

An energy analyst named Vandana Hari said the oil market doesn’t see Iran’s attack causing a big problem with oil supply right now.

Oil prices might go below $90 per barrel, but they probably won’t drop by much. Traders are more concerned about conflicts in places like Gaza and Ukraine.

Experts also think how Israel responds to Iran’s attack will affect global markets.

Some say if Israel reacts strongly, oil prices could go up a lot.

But others think markets will stay the same until we know more about what’s going on.

In Asia, stock markets went down on Monday as people worried about the impact of Iran’s attack.

Gold prices went up because gold is seen as a safe investment when things are uncertain.

Iran attacked Israel with drones and missiles after an attack on its consulate in Syria.

Last week, oil prices reached $92.18 per barrel before going back down to $90.45.

Iran is a big oil producer and a member of a group of countries that control oil prices.

One big concern is if Iran’s actions will affect oil shipping through a narrow passage called the Strait of Hormuz.

About 20% of the world’s oil goes through this passage, so any problems there could make oil prices go up even more.

On Saturday, Iran took control of a ship with links to Israel as it was passing through the Strait of Hormuz.


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