Oil prices experienced a decline following an attack on Iran, as the market reduced its risk premium. The attack on Iran led to a decrease in oil prices, reflecting a decrease in geopolitical tensions that had previously driven prices up.
The market's reaction to the attack resulted in a drawdown of the risk premium that had been factored into oil prices due to concerns over potential disruptions to global oil supply. This drawdown indicates a shift in market sentiment towards a more stable outlook for oil markets.
