Oil stocks slump after Washington Post reported Israel's plans for Iran

Investing.com -- Oil stocks fell sharply premarket Thursday following a Washington Post report detailing Israel's intention to target military sites in Iran instead of nuclear or oil facilities.

Investors reacted to the news, sending shares of major oil companies lower premarket. Chevron (NYSE:CVX ) declined 2.1%, Exxon Mobil (NYSE:XOM ) dropped 2.4%, Shell (LON:SHEL ) slid 3.1%, BP (NYSE:BP ) tumbled 3.9%, and ConocoPhillips (NYSE:COP ) fell 2.5%.

The report, citing officials familiar with the matter, says Israel recently informed U.S. President Joe Biden of Israel's plans, which suggest a more limited military strike against Iran.

The proposed operation is said to aim to avoid escalation into a full-scale war while preventing direct interference in the upcoming U.S. elections, according to anonymous officials cited by the Washington Post.

The possibility of a strike on Iran's oil facilities had raised concerns over potential disruptions to global energy markets.

Analysts have warned that such an attack could trigger a surge in oil prices. However, the report has eased immediate fears of a major supply shock.

The decision to avoid targeting Iran's oil or nuclear sites brings some relief in Washington, the Washington Post reported. They added that the U.S. administration had signaled opposition to a strike on nuclear infrastructure, fearing it could further destabilize the region and draw the U.S. into deeper military involvement.

While the news eased concerns over immediate energy disruptions, oil markets remained jittery. Investors still fear that rising tensions could escalate unpredictably, impacting global oil supplies.

Source: Investing.com