Oil futures ended the week with losses as traders perceive limited risk of Israel’s retaliatory strike on Iran escalating into a broader conflict that disrupts crude supplies.

Both U.S. crude oil and global benchmark Brent fell around 3% since last Friday, reversing gains made earlier amid fears of a potential Israel-Iran war.

Market sentiment shifted from fear to relief after Israel and its allies thwarted Iran’s recent drone and missile attack on Israel.

Israel’s response, launched after days of international pressure to avoid escalation, was described as limited and carefully calibrated, CNBC reported.

The retaliation used small explosives and drones rather than manned aircraft. Experts suggest that the cycle of escalation between Israel and Iran may be over for now.

Although explosions were reported near Iran’s Isfahan airport, Iran’s armed forces assured the security of nuclear facilities in the region.

The oil market remains concerned about potential strikes on Iran’s nuclear sites, as such actions could provoke a response from Iran.

Written by B.C. Begley