Oil prices fall sharply after Israeli strike on Iran

Global oil prices are falling sharply Monday 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. 1 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 if the conflict in the Middle East were to spread, it could drag in some of the world’s largest energy producers. The United States is the world’s largest producer of crude.

On Monday, the price of benchmark U.S. crude and Brent crude, the international benchmark, tumbled 6%.

The Israeli military said its aircraft targeted facilities that Iran used to make the missiles fired at Israel as well as surface-to-air missile sites. There was no indication that Iran’s oil or nuclear sites were hit.