Israeli jets completed three waves of strikes early Saturday morning against missile factories and other sites in Tehran and western Iran. The attack, which was expected by the market, was in response to an Iranian missile attack on Oct. 1.
Iran on Saturday played down the attack, saying it caused only limited damage.
Oil is plunging now as the geopolitical risk premium has come off. Some major banks and analysts are lowering their forecast for prices.
Citi lowered its Brent target price for the next three months to $70 a barrel, versus $74 previously. Tudor Pickering Holt & Co on Monday said it sees WTI averaging $65 a barrel next year, with potential downside of under $50 a barrel if OPEC turns up production.
Turning to Russia, energy firm Novatek shut down commercial operations at the only operational train of its Arctic LNG 2 project with no plans to restart it during the winter, Reuters reported. The project was set to become one of Russia's largest LNG facilities, but has been hurt by Western sanctions.
Exports from Russia's three main western ports will drop by 13% in November, compared with the prior month, as refinery maintenance comes to an end.
Loadings from Russian ports are expected to be about 2.25 million barrels per day in October. Throughput at refineries is also expected to increase next month.
Finally, in the United States, an offshore wind conference is getting underway this week in Atlantic City where some of the biggest players in the industry will be presenting. The U.S. offshore wind industry is a key part of President Joe Biden's climate goals, but has been hit by project cancellations and other problems. Reuters reporter Shariq Khan will be there covering the event.
