Iran launched retaliatory attack on Israel over weekend
Brent, WTI fall as risk premium already factored in
Uncertainty over Israel39;s response remains analysts

SINGAPORE, April 15 Reuters Oil prices fell on Monday as market participants dialled back risk premiums following Iran39;s weekend attack on Israel that the Israeli government said caused limited damage.

Brent futures for June delivery fell 50 cents, or 0.5, to 89.95 a barrel by 0630 GMT, while West Texas Intermediate WTI futures for May delivery were down 52 cents, or 0.6, at 85.14 a barrel.

Iran39;s attack involved more than 300 missiles and drones, and was the first on Israel from another country in more than three decades, raising concerns about a broader regional conflict affecting oil traffic through the Middle East.

But the attack, which Iran called retaliation for an air strike on its Damascus consulate, caused only modest damage, with missiles shot down by Israel39;s Iron Dome defence system. Israel, which is at war with Iranbacked Hamas militants in Gaza, has neither confirmed nor denied it struck the consulate.

An attack was largely priced in the days leading up to it. Also the limited damage and the fact that there was no loss of life means that maybe Israel39;s response will be more measured, said Warren Patterson, head of commodities strategy at ING.

But clearly, there is still plenty of uncertainty and it all depends on how Israel now responds.

As Iran currently produces over 3 million…