GLOBAL stocks diverged and oil prices tumbled on Monday as markets were relieved that Israel’s strikes on Iran had avoided the country’s energy infrastructure.

Israel avoided Iran’s oil and nuclear facilities in its air strikes on the country on Saturday, easing investor fears about the extent of Israel’s retaliation to Tehran’s 1 October missile barrage.

Iran has downplayed the attack, saying it caused “limited damage” to a few radar systems on military sites.

“Investors breathed a sigh of relief as the attack was more restrained than expected,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Brent North Sea crude, the international benchmark oil contract, fell around six per cent on Monday morning with prices hovering around $71 per barrel. “Israel’s strike, carefully avoiding energy sites, has softened fears of a full-scale conflict with Iran,” said Stephen Innes, analyst at SPI Asset Management.

“Even more telling is Iran’s response, downplaying the attack’s impact and signalling that its warnings may have deterred any more aggressive action from Israel,” he added.

Concerns have shifted back to focus on oversupply in 2025 and a slowdown in demand from China, the world’s largest oil importer, according to analysts.

London’s FTSE 100 retreated as crude prices affected both ends of the top-tier index. — AFP