NEW YORK, Oct 29 — Oil prices fell and global stocks rose yesterday on relief that Israel’s strikes on Iran avoided the country’s energy infrastructure.

Israel spared oil and nuclear facilities in its air strikes on Iranian military targets Saturday, easing investor concerns about the extent of Israel’s retaliation to Tehran’s October 1 missile barrage.

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

Oil prices have swung wildly in recent weeks, with investors concerned that an attack on Iran’s oil facilities would not only take Iranian crude off the market but spur a wider conflict involving other regional oil producers.

Brent North Sea crude, the international benchmark oil contract, fell more than six per cent yesterday with prices hovering above $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 in the oil market have now shifted back to focus on potential oversupply in 2025 and a slowdown in demand from China, the world’s largest oil importer, according to analysts.

US stocks pushed higher, boosted by the cheaper oil, and as investors look ahead to a busy week of economic indicators that could set the direction for a market that is already hovering near record highs.

On Wednesday comes the first estimate of third-quarter US GDP, and on Thursday the Federal Reserve’s preferred inflation gauge will be reported. Finally, Friday sees the release of key US monthly jobs figures.

Together, the reports should provide clues on the Fed’s interest rate policy for the rest of the year.

It’s also a big week for US company earnings as five of the “Magnificent Seven” tech stocks will report third-quarter results, including Alphabet (Google), Amazon, Apple, Meta (Facebook) and Microsoft.

London, Paris, and Frankfurt all closed higher. London was hit at both ends by the falling crude prices. Oil and gas giants BP and Shell were among the biggest drops.

But airlines easyJet and British Airways-owner IAG led gains on the prospect of lower fuel prices.

Dutch medical device maker Philips lowered its full year sales target yesterday, blaming a deterioration in demand from China, with its share price dropping almost 17 per cent in Amsterdam, making the stock exchange’s AEX index one of the few to fall yesterday.

On currency markets the yen hit a three-month low, sliding more than one per cent against the dollar as Sunday’s general election resulted in a hung parliament.

But that helped the Tokyo stock market close up 1.8 per cent as the yen’s weakness boosted shares of exporters. — AFP