Crude oil futures fell about 2% on Tuesday, as the rally on geopolitical risk took a pause while the market waits for Israel to strike back against Iran.
"Oil can keep ascending only for so long purely based on perceptions and not actual supply disruption," Tamas Varga, an analyst at oil broker PVM, said in a Tuesday note.
Oil prices have surged about 13% through Monday's close since Iran fired around 180 ballistic missiles at Israel last week, raising fears that Israel might retaliate by hitting Iran's crude industry.
ET:The market was also disappointed that Chinese officials did not announce any new stimulus plans at a press briefing Tuesday.
In early September, oil prices hit their lowest level since December 2021.
Persons:
Tamas Varga, Israel, Phil Flynn
Organizations:
Iran, Price Futures
Locations:
Israel, Iran, China