08:53 AM EDT, 10/28/2024 (MT Newswires) -- Oil prices plunged early on Monday as a geopolitical-risk premium faded after Israel launched a relatively limited retaliation for Iran's Oct.1 missile attack on the country.

West Texas Intermediate crude oil for December delivery was last seen down US$4.46 to US$67.32 per barrel, the lowest since Sept.11, while December Brent crude, the global benchmark was down US$4.50 to US$71.55.

The drop came after Israel over the weekend launched its long-awaited response to Iran's attack, targeting military and industrial targets. The limited response is being seen as a de-escalation of tensions between the two countries and eases fears Israel's wars on Gaza and Lebanon would spread to the Persian Gulf.

"Israel's limited attack on Iran avoided the nation's energy infrastructure, thereby reducing the risk of a disruption and potentially signaling a de-escalation," Saxo Bank noted.

With geopolitical risk easing, attention has returned to weak demand from China, rising inventories in the United States and OPEC+'s plan to begin returning 2.2-million barrels per day of voluntary production cuts with monthly additions of 180,000 barrels per day for a year beginning in December.