Brent, WTI down more than 3bbl in early trade
Israel hits Iran military facilities, no oil disruption
Iran says Israel39;s attack caused only limited damage

SINGAPORE, Oct 28 Reuters Oil prices tumbled more than 3 a barrel on Monday after Israel39;s retaliatory strike on Iran over the weekend bypassed Tehran39;s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.

Both Brent and U.S. West Texas Intermediate crude futures hit their lowest levels since Oct. 1 at the open. By 0750 GMT, Brent was at 72.92 a barrel, down 3.13, or 4.1, while WTI slipped 3.15, or 4.4, to 68.63 a barrel.

The benchmarks gained 4 last week in volatile trade as markets priced in uncertainty around the extent of Israel39;s response to the Iranian missile attack on Oct. 1 and the U.S. election next month.

Scores of Israeli jets completed three waves of strikes before dawn on Saturday against missile factories and other sites near Tehran and in western Iran, in the latest exchange in the escalating conflict between the Middle Eastern rivals.

The geopolitical risk premium that had built in oil prices in anticipation of Israel39;s retaliatory attack came off, analysts said.

The more limited nature of the strikes, including avoiding oil infrastructure, have raised hopes for a deescalatory pathway, which has seen the risk premium come off a few dollars a barrel, Saul Kavonic, a Sydneybased energy analyst at MST Marquee, said.

The market…