Oil plunged more than 6% toward 2024 lows after an expected Israeli retaliatory strike against Iran over the weekend spared the country’s petroleum infrastructure.

West Texas Intermediate (CL=F) futures tumbled 6.1% to settle at $67.38 per barrel, while Brent (BZ=F), the international benchmark closed at $71.42 a barrel.

Tel Aviv’s attack early Saturday morning, which came in response to Tehran's missile strikes on Oct. 1, was targeted at Iranian military facilities.

Oil was volatile in the weeks preceding the retaliation, as Brent touched $80 per barrel as traders speculated whether Israel would strike against Iran’s oil infrastructure. The White House advised against targeting the country's oil or nuclear facilities.

Iran, a founding member of the Organization of the Petroleum Exporting Countries (OPEC), is responsible for more than 3 million barrels of crude oil production per day.

Iran’s military joint staff said in a statement the attack caused "limited damage" and said four people died. The statement condemned the strike but added that Tehran "recognizes its responsibilities towards regional peace and security."

In a note Citi analysts said the recent military actions by Israel on Iran "is not likely to result in an imminent escalation in geopolitical tensions that may affect oil supply, and as such we expect a lower risk premium in the near term."

The analysts lowered their Brent forecast for the fourth quarter of this year to $70 per barrel, down from $74.

With the threat of a supply disruption from Iran unlikely, the market's next big catalyst could be OPEC's resolve to unwind production output, a move the oil alliance has previously delayed but is currently slated to start in December.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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