Oil prices plunged more than 7% on Monday, with Brent crude settling at $71.48 per barrel and U.S. West Texas Intermediate (WTI) closing at $68.51, both down $5.53, or 7.2%. The sharp decline came as Iran retaliated against U.S. airstrikes not by targeting oil infrastructure or disrupting the Strait of Hormuz, but by striking a U.S. military base in Qatar—avoiding actions that might disrupt global oil flows.
Brent’s 7.2% drop marked its steepest one-day fall since August 2022, with prices trading within a $10 range, the widest since July 2022. The market initially jumped nearly 6% in early trading on fears Iran would block oil exports, but losses mounted after it became clear the retaliation would not immediately impact crude supply routes. Both benchmarks continued falling in after-hours trading, down nearly 9%.
The Al Udeid airbase in Qatar—targeted by Iran—is the largest U.S. base in the region. No casualties were reported, and there were no disruptions to QatarEnergy operations, LNG shipments, or production. Iranian officials stated the U.S. airstrikes had broadened the scope of what Iran now considers legitimate targets, but traders largely dismissed the risk of an imminent oil supply cutoff.
Some oil companies, including BP, TotalEnergies, and Eni, evacuated staff from Iraq’s oilfields as a precaution. Two supertankers also diverted course near the Strait of Hormuz, though there was no confirmed closure or attack on the vital waterway. President Trump, commenting on social media, advocated for increased domestic drilling to keep prices down.
Analysts at HSBC noted that Brent could briefly spike above $80 if the Strait of Hormuz becomes a real target but would likely retreat if physical flows remain undisturbed. For now, the market appears to be recalibrating the geopolitical risk premium downward.