Oil prices tumbled over 6%, falling $5 a barrel on after Iran launched a missile attack on the Al Udeid US airbase in Qatar in retaliation for weekend US strikes on Iranian nuclear facilities, while notably avoiding any disruption to oil and gas tanker traffic through the Strait of Hormuz. The oil market initially surged on weekend tensions but began selling off sharply after Iran’s measured response targeted the largest US military installation in West Asia rather than energy infrastructure.
Global oil prices recorded their sharpest single-day decline in five years following the missile strike, which was widely viewed as symbolic and calibrated retaliation that reportedly caused no casualties or significant damage. Sources indicated that Tehran may have coordinated the timing and targets with Qatari officials in advance, a move analysts interpret as an effort to avoid sparking a broader conflict that could destabilize energy markets. There was no interruption to Qatar Energy shipments or production after the attack,and no other Iranian attack was detected at any US military base beyond Qatar..
The price decline reflects market relief that Iran’s retaliation strategy focused on military rather than economic targets. Iran’s strike avoided oil facilities, pipelines, and the Strait of Hormuz. The absence of direct threats to energy infrastructure helped reassure markets that supply disruptions were unlikely, contributing to the steep price drop as traders unwound risk premiums built up over the weekend.