Oil prices continued to fall on Tuesday following reports that Israeli Prime Minister Benjamin Netanyahu assured US President Joe Biden that any retaliation against Iran would avoid targeting its crude or nuclear facilities. The pledge followed a missile attack earlier this month.
The drop in oil prices also reflects concerns about Chinas economic outlook, as Beijing did not announce any new stimulus measures at a weekend briefing, nor provide details on previously announced plans.
Despite the decline in oil, global equity markets showed positive movement, with most Asian markets rising after record closes for the Dow and S P 500 on Wall Street. Investors are optimistic as the third-quarter earnings season is set to begin.
Early trading saw both major oil benchmarks decline by around three percent, adding to losses of at least two percent from Monday. The Washington Post reported that Netanyahu promised to target Irans military rather than its oil and nuclear infrastructure.
Investors have been on alert since Iran fired missiles at Israel earlier this month, raising fears of a conflict that could impact the regions oil supply. The recent escalation follows Tel Aviv's offensive against Hezbollah leaders in Lebanon, alongside its ongoing airstrikes in Gaza that has resulted in deaths of over 40,000 Palestinians, many of whom are women and children, according to reports from the Palestine health ministry.
