Why Oil Is Down Despite Israel's Attacks

Israel attacked the energy infrastructure of Iran, a major oil producer over the weekend. Yet prices of oil were falling Monday.

Escalation of the war is a major risk for oil as Iran is the third-biggest oil producer in the Organization of the Petroleum Exporting Countries with an estimated production of roughly 3.3 million barrels per day. Fear that there could be severe disruption to flow of oil had pushed prices up late last week.

But Brent futures fell 1.9% to trade below $73 a barrel on Monday. One reason could be that the market is taking solace from the understanding that so far Iran's exporting infrastructure hasn't seen a known impact.