Crude oil prices dropped sharply on Monday following reports that Iran launched an attack on a United States military base in Qatar, apparently in retaliation for earlier US airstrikes on Iranian nuclear sites over the weekend.
As of 6:15 pm GMT, the price of West Texas Intermediate (WTI) crude fell by 6.5 percent, trading at $69.96 per barrel. Brent crude also declined by 6.4 percent, selling at $72.07 per barrel – the lowest level recorded in the past 10 days.
A senior official from the US Department of Defense confirmed there were no reported American casualties in the attack, which analysts say occurred away from major oil facilities or infrastructure.
An oil market analyst, John Kilduff of Again Capital, described Iran’s response as “measured” and not targeted at heavily populated areas. According to him, the move appears to be aimed at maintaining face rather than escalating conflict.
“This is likely a face-saving response by Iran, and there’s hope that diplomacy may take the front seat from here,” Kilduff stated.
The renewed hostilities between Iran and Israel have once again brought global attention to the Strait of Hormuz – a critical maritime route through which a significant portion of the world’s oil supply is transported. While Iran has consistently issued threats to block the strait during times of heightened tension, it has yet to act on those threats.
Kilduff further added that current developments do not suggest any immediate disruption to oil exports through the region. “It’s clear for now that oil flows, especially through the Strait of Hormuz, remain unaffected,” he said.
The market, however, remains on alert as geopolitical risks in the Middle East continue to weigh heavily on global oil trade and energy security.
