Oil prices have tumbled more than $3 a barrel after Israel’s retaliatory strike on Iran over the weekend bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East, Reuters reports.

Both Brent and US West Texas Intermediate crude futures hit their lowest levels since Oct 1 at the open. By 1:39am GMT, Brent LCOc1 was at $72.70 a barrel, down $3.35, or 4.4per cent, while WTI CLc1 slipped $3.27, or 4.6pc, to $68.51 a barrel.

The benchmarks gained 4pc last week in volatile trade as markets priced in uncertainty around the extent of Israel’s response to the Iranian missile attack on Oct 1 and the US election next month.

The geopolitical risk premium that had built in oil prices in anticipation of Israel’s retaliatory attack came off, analysts said.