Oil sinks on de-escalation hopes despite Iran strike

LONDON, April 15 (AFP): World oil prices sank Monday as traders bet on de-escalation in the Middle East despite a strike on Israel by key crude producer Iran.
Brent and WTI prices shed one percent before paring losses, while global stock markets diverged.
Iran unleashed more than 300 ballistic and cruise missiles and attack drones late Saturday. Most were repelled by Israel's air defences.
Tehran said the aerial strike was a legitimate response to a deadly attack on an Iranian embassy building in Damascus that it blames on Israel. But it also said "the matter can be deemed concluded".
Haven investment gold dipped Monday after reaching a record peak of $2,431.52 before the weekend.
The dollar touched a fresh 34-year high against the yen at over 154 yen to the greenback.
"The market sees de-escalation as the most likely path despite the Iranian strike," noted analysts at DNB Markets.
"The attack was well announced, with Israel and its allies fully prepared, it caused minor damage and no casualties, and with Iran quickly out saying that 'the matter can be deemed concluded'. It is a clear invitation to de-escalate."
Experts said the limited scope of the attack showed Iran was seeking to make a show of strength, but without sparking a conflict.
US President Joe Biden was reported to have cautioned Israeli Prime Minister Benjamin Netanyahu to "take the win" and forego a counterattack.
Nevertheless, Asian equities mostly fell on fears of a broader conflict in the volatile Middle East, although Shanghai stocks jumped higher on news of fresh regulatory measures that could help its long-term performance.
"All eyes remain on whether there will be any response from Israel and markets will likely be volatile in the day ahead to any geopolitical headlines," said Saxo analyst Redmond Wong.