Oil prices drop for third day as Israel considers avoiding strikes on Iran's crude infrastructure

Oil prices fell for the third straight session following reports that Israel may refrain from targeting Iran's crude infrastructure, alleviating fears of a significant supply disruption.

Brent futures slumped as much as 4.1% to below $75 a barrel, while West Texas Intermediate slid to around $71, News.Az reports, citing foreign media.

Israel said it was weighing US warnings against striking Iran’s energy sites, but that it would act based on its own assessments, after the Washington Post reported that Prime Minister Benjamin Netanyahu told the Biden administration he is willing to strike military rather than oil or nuclear facilities in Iran.

Crude prices have been on a roller coaster in recent weeks as traders tracked an escalating conflict in the Middle East — home to about a third of global supply — after Israel vowed significant retaliation to an Oct. 1 missile barrage from Iran. That had offset concerns about slowing growth in key markets, including China.

Brent declined 2% on Monday after China’s highly anticipated Finance Ministry briefing over the weekend lacked specific new incentives to boost consumption in the world’s biggest crude importer. Adding to the gloom, OPEC joined a chorus of others projecting weakening demand growth, trimming its forecasts for this year and next for a third consecutive month.

News.Az