Israel Defence Forces (IDF) Strikes Iran – Oil Prices Remain Stable

Israel Defence Forces (IDF) has conducted three waves of targeted airstrikes on Iranian military installations early Saturday morning. According to the IDF, these “precise strikes” were a direct response to a ballistic missile attack by Tehran on October 1, marking the second time in six months that Iran has launched missiles directly at Israel.

At the end of the strikes, the IDF said it has met its objectives and cautioned Iran against retaliation. An Iranian news outlet reported Iran’s intent to respond “proportionally,” acknowledging that the strikes affected military bases in the provinces of Ilam, Khuzestan, and Tehran, resulting in what Iran described as “limited damage.” According to Tasnim news agency, two Iranian soldiers were killed while defending against incoming projectiles. The IDF stated that their aircraft targeted missile production facilities responsible for recent missile attacks on Israel, as well as surface-to-air missile sites.

This marks the first time that Israel has openly launched such an assault on Iranian targets, escalating tensions between the two adversaries and raising concerns about broader conflict. Reports indicated that the White House was briefed ahead of Israel’s strikes on Iran, and afterward, the U.S. Government cautioned Iran against retaliatory measures, suggesting the airstrikes should “complete” the current exchange of fire.

At the Commonwealth summit in Samoa, British Prime Minister Sir Keir Starmer commented, affirming Israel’s right to defend itself but urging all parties to avoid further escalation. Starmer specifically called on Iran to refrain from responding.

Oil Prices remain Stable

Upon reports of the airstrikes on Iran by the IDF, oil prices initially jumped, with Brent crude rising by 2.5% to $85.50 per barrel and West Texas Intermediate (WTI) by 2.2% to $78.50 per barrel due to the heightened tensions. However, as the strikes appeared limited to military targets, oil prices have remained stable, with Brent crude falling to $84.20 per barrel and WTI to $77.20 per barrel.

Market analysts believe the contained reaction was due to several factors including the target of military sites in Iran rather than Iranian oil infrastructure. This has helped calm fears of significant supply disruptions or escalating oil prices.