08:44 AM EDT, 04/19/2024 (MT Newswires) -- Oil prices fell early on Friday as the geopolitical risk premium continued to fade even after Israel launched a retaliatory attack on Iran that caused little damage.

West Texas Intermediate crude oil for May delivery was last seen down US$0.56 to US$82.17 per barrel, the lowest since late March, while June Brent crude, the global benchmark, was down US$0.57 to US$86.54.

The drop comes even after Israel carried out drone attacks near the Iranian city of Isfahan that caused little reported damage. The attacks were a response to Iran's weekend attempt to strike Israel with drone and missiles that also had little effect, with most of the weapons shot down by aircraft and air-defense systems. The Guardian reported the Iranian government is downplaying the attack and quoted an Iranian official saying the country has no immediate plans to retaliate.

Oil prices spiked higher following the attack, with Brent crude briefly rising back above US$90.00 in overnight trade before quickly retreating, as traders returned to bidding down oil's risk premium even as Israel's continues its war in Gaza while Yemen's Houthi militants are still attacking Red Sea shipping.

"Brent briefly soared back above $90 before reversing lower after Iranian media downplayed a retaliatory strike by Israel. Overall, most of the five-dollar range seen this past week has been driven traders attempt to quantify the level of risk premium needed to reflect heightened tensions but with no impact on supply," Saxo Bank noted.