Oil prices tumbled in early Asian trading Monday with dealers relieved that Israeli strikes carried out Saturday against military targets in Iran had spared the country`s oil installations.

The price of North Sea Brent for delivery in December fell by 4.05 percent to $72.97, while West Texas Intermediate plunged by 4.19 percent to $68.77.

Israel said it hit Iranian missile factories and military facilities across several provinces at the weekend, reports AFP.

"Israel`s strike, carefully avoiding energy sites, has softened fears of a full-scale conflict with Iran," said Stephen Innes, analyst at SPI Asset Management.

"Even more telling is Iran`s response, downplaying the attack`s impact and signaling that its warnings may have deterred any more aggressive action from Israel," he said.

"This sets up a potential ongoing deflation in oil`s risk premium over the coming days."

Prices could continue falling if tensions ease further, he said, potentially slipping to $60 a barrel as traders shift focus to the prospect of a 2025 supply glut.