Oil prices tumbled more than 4% on Monday despite Iran launching six missiles at the U.S.-operated Al-Udeid Air Base in Qatar, as investors bet against long-term supply disruptions in the region.
U.S. crude fell $3.18, or 4.31%, to $70.66 per barrel, while global benchmark Brent dropped $3.35, or 4.35%, to $73.66. Both contracts had spiked overnight after the U.S. struck Iranian nuclear sites over the weekend, with Brent briefly rising above $81 per barrel.
Iran’s missile attack, reportedly in retaliation for the U.S. strikes, targeted Al-Udeid — the largest American military base in the Middle East. While Iran’s parliament signaled support for closing the Strait of Hormuz — a vital oil transit route — analysts noted that the final decision rests with the country’s national security council.
“The market is pricing in a scenario where things de-escalate gradually,” said Jorge Leon, geopolitical head at Rystad Energy. However, he warned that a sudden shift could still pose serious risks, especially if Iran attempts to shut the Strait, through which nearly 20% of global crude passes.
Despite the heightened tension, markets remained focused on signals of supply stability and increased production, brushing off immediate fears of disruption.
This is a developing situation.
