Oil prices plunge as Iran's missile strike avoids energy infrastructure in Qatar

Dubai: Oil prices dropped sharply after Iran’s retaliatory strike on US military bases in Qatar appeared less aggressive than initially feared, calming concerns of an immediate disruption to global energy supplies.

Brent crude and West Texas Intermediate (WTI) both plunged late Monday, falling 4.7% to trade below $73 and $70 per barrel, respectively, after Iran fired six missiles at US military base in Qatar. The response came after the US joined Israel in a weekend strike targeting Iranian nuclear facilities.

Traders had initially braced for a more severe reaction from Tehran—particularly a possible attempt to block or disrupt the Strait of Hormuz, a vital shipping lane through which about 20% of global oil supply flows. However, Iran’s limited strike, which avoided critical energy infrastructure, helped ease market anxiety.

Earlier in the day, oil prices were already under pressure following a social media post from US President Donald Trump, who warned against rising oil prices and urged the Energy Department to "drill now." In response, Energy Secretary Chris Wright confirmed, “We’re on it.”

Analysts noted that the latest retaliation did not appear to disrupt the flow of oil—a key concern for financial markets. Since the start of the Israel-Iran conflict, the biggest fear has been that it could tighten global oil supply, driving up prices for crude, petrol, and other refined products.

Even before Trump’s comments, crude prices had begun to weaken as it became apparent that Iran’s retaliation would be more symbolic than damaging. While Tehran had warned of “everlasting consequences” following the US-led strikes, investors are now reassessing the likelihood of a broader escalation that would impact energy supply chains.

Reuters reported that the US still sees a “high risk” of additional Iranian strikes targeting US forces in the region, which could rekindle volatility in oil markets in the coming days.

Markets will closely monitor whether Iran’s response marks the end of this round of hostilities or whether further retaliations could trigger a broader regional escalation, particularly involving key oil transit routes.

Until then, oil prices may remain volatile—but the absence of immediate damage to supply infrastructure offers some short-term relief for energy markets.