Oil prices tumbled by more than six per cent on Monday after Iran launched an attack on a US military base in neighbouring Qatar, in retaliation for American strikes on Iranian nuclear facilities over the weekend.
By around 1815 GMT, West Texas Intermediate futures had fallen 6.5 per cent to $69.96 per barrel, while Brent crude futures dropped 6.4 per cent to $72.07 per barrel—their lowest level in 10 days.
A US defence official confirmed that no American personnel were harmed in the missile strike, which analysts noted did not target key oil installations.
John Kilduff of Again Capital described Iran’s response as “somewhat measured” and directed away from populated areas.
“This is a face-saving measure by the Iranians, and hopefully, a diplomatic off-ramp will now be taken,” Kilduff remarked.
The growing confrontation between Iran and Israel has reignited fears over the security of the Strait of Hormuz—a crucial maritime route for global oil shipments that Iran has repeatedly threatened to close during past periods of heightened tension, though it has never followed through.
Despite the latest escalation, Kilduff suggested the immediate risk to oil supplies remains limited.
“It’s pretty clear that this is not going to turn into—at least right away—any kind of disruption to oil flows in the region, particularly through the Strait of Hormuz,” he said.
