WTI crude slumps over 4% as Israel's strikes ease supply fears

WTI crude futures plummeted over 4% to under $69 per barrel on Monday after Israel's retaliatory strikes on Iran over the weekend specifically avoided targeting the country's crude facilities and nuclear sites, alleviating concerns about potential disruptions to energy supplies.

WTI crude slumps over 4% as Israel's strikes ease supply fears

Israeli fighter jets conducted strikes on military installations in Iran on Saturday in retaliation for Iranian missile attacks earlier this month. Oil prices have fluctuated dramatically this month amid escalating geopolitical tensions in the Middle East; however, Israel's measured response has raised hopes for de-escalation in the regional conflict.

China's economic slowdown pressures oil demand

On the demand front, indications of slowing economic activity in China, the world's largest oil consumer, continued to dampen sentiment, as recent data revealed a drop in industrial profits despite government stimulus efforts. Additionally, market participants are closely monitoring OPEC+ for potential output adjustments and considering the implications of the upcoming US election.