Oil prices fall more than 3% as traders discount Iran-Israel war risk [Video]

Crude oil futures fell more than 3% Wednesday as the market dismissed the risk of a wider war between Israel and Iran that could disrupt supplies.

The West Texas Intermediate contract for May delivery lost $2.67, or 3.13%, to settle at $82.69 a barrel. June Brent futures were down $2.73, or 3.03%, at settle at $87.29 a barrel. U.S. oil and the global benchmark are down more than 3.4% for the week.

“Oil prices go about their business of unwinding some of the war premium that has been priced-in due to the continuing tensions surrounding the Gaza conflict and the subsequent Iranian missile onslaught on Israel,” John Evans, an analyst at oil broker PVM, wrote in a note Wednesday.

“It is hard to imagine that ‘cooler heads prevail’ can be associated with this eons-long strife, but thus far Israel has adhered to the international calls of showing restraint,” Evans said.

The hostilities in the Middle …