On October 26, 2024, Israel's military operations against Iran took a significant turn as plans to target Iranian oil and energy facilities were called off following discussions with the United States. This decision was reported by Israeli Channel 13, highlighting the impact of U.S. diplomatic efforts in the region. [4992aa7a]
Earlier that day, Israel had conducted airstrikes across Iran, targeting missile defense systems and manufacturing facilities, including the S-300 defense system near Tehran Airport. These strikes were a response to Iran's missile attacks on Israeli military sites earlier in the month, where approximately 200 missiles were launched at Israel. [180413f7][61f15e00]
In the wake of the airstrikes, the Iranian army reported that two of its soldiers were killed, escalating tensions further. Saudi Arabia condemned Israel's actions, while the United Nations' nuclear watchdog confirmed that Iran's nuclear facilities were not impacted by the strikes. [4992aa7a]
Following these developments, oil prices are expected to fall when trading resumes on October 28, 2024. Analysts have noted that Israel's restrained military response and the lack of significant damage to Iran's oil and nuclear infrastructure could lead to a decrease in oil prices. Brent and U.S. West Texas Intermediate (WTI) crude futures had previously risen 4% amid uncertainty after Iran's missile attack on October 1. Experts predict WTI may return to around $70 per barrel, with Brent heading towards $74-$75. [ad7cbdc7]
Israeli President Isaac Herzog praised the cooperation with the U.S., emphasizing the importance of diplomatic channels in managing the conflict. President Joe Biden expressed hope for a peaceful resolution following the Israeli strikes, reiterating Israel's right to defend itself while urging restraint to prevent further escalation. [4992aa7a][23dec58b]
Despite the halt in plans to strike oil facilities, analysts suggest that Iran may still respond to the airstrikes, especially as its nuclear program continues to advance. The political ramifications of these military actions are also significant, with former President Trump criticizing Biden's approach and advocating for a more aggressive stance against Iran as both prepare for the upcoming election. [c776f506][4a6286a0]