Oil prices dropped sharply on Monday after Iran launched missile strikes on a US military base in Qatar. The attack came in response to US airstrikes on Iranian nuclear sites over the weekend. Brent crude fell by 3.8% to $74.09, while US West Texas Intermediate dropped to $71.06. By evening, WTI futures slipped even further to $69.96 per barrel.
The situation intensified as explosions were heard over Doha, prompting Qatar and the UAE to close their airspaces. At least two supertankers changed course near the Strait of Hormuz, one of the world’s most critical oil shipping lanes. Around 20% of the global oil supply passes through this route, raising global concerns despite analysts downplaying the risk of a full shutdown.
US President Donald Trump confirmed the weekend strikes on Iran’s nuclear facilities and warned of continued pressure. Iran, in return, expanded its list of targets and described Trump as a “gambler.” Meanwhile, Israel reportedly launched more attacks, escalating fears of a broader Middle East conflict.
Despite rising tensions, energy experts suggested oil infrastructure remains untouched so far. However, oil majors like BP and Total evacuated some staff from Iraq’s Basra oilfields as a safety measure. Qatar confirmed no casualties from the missile strike on the al-Udeid base, which hosts US and allied forces.
Markets are now watching closely for signs of further retaliation. While some investors predict Brent could surge past $80 per barrel if the Strait of Hormuz faces closure, others expect prices to stabilize if supply remains undisrupted. The global energy sector remains on high alert as geopolitical risks grow.