Oil prices fall as reality of weak global demand overtakes risk of wider war in Middle East

Global oil prices are falling sharply after a retaliatory strike by Israel over the weekend targeted Iranian military sites rather than its energy infrastructure as had been feared.

Prices for crude spiked globally on Oct. 2 after Iran fired nearly 200 missiles into Israel, part of a series of rapidly escalating attacks between Israel and Iran and its Arab allies that threatened to push the Middle East closer to a regionwide war.

Iran is the world’s seventh largest oil producer, but a wider conflict in the Middle East could have an impact for some of the world’s largest energy producers in the region.

With many seeing that threat diminishing, at least in the near term, the price of benchmark U.S. crude and Brent crude, the international benchmark, tumbled 6% Monday. U.S. crude fell well below $70 per barrel.