Oil prices plummeted 7% after an Iranian strike on a US airbase in Qatar, but experts say investors are hoping for de-escalation in the conflict. The attack, which left no casualties, appears to have been calibrated by Iran to avoid further escalation.
The oil market narrowly avoided its worst-case scenario of Iran choking off energy exports from the Persian Gulf. Crude oil prices fell sharply on Monday, with US crude oil dropping $5.33 to close at $68.51 per barrel and global benchmark Brent falling $5.53 to settle at $71.48. These levels are now the lowest since Israel’s bombing campaign against Iran began on June 13.
Iran launched a missile strike on Qatar’s Al-Udeid Air Base in retaliation for US strikes on its nuclear sites over the weekend, according to NBC News. However, Qatar confirmed that no casualties were reported, and their air defenses intercepted the Iranian missiles.
Analysts say investors believe the conflict will de-escalate after President Trump’s actions, with Energy Secretary Chris Wright stating that the market is hopeful for a peaceful resolution. Helima Croft, head of global commodity strategy at RBC Capital Markets, agrees that Trump’s approach may be effective in achieving peace.
The oil market has avoided its worst-case scenario of Iran closing the Strait of Hormuz, which would have impacted global energy exports. However, US Secretary of State Marco Rubio warns that attempting to close the strait would be “economic suicide” and could lead to a massive escalation.
Despite these concerns, crude prices remain at historically low levels, indicating market optimism for de-escalation.
Source: https://www.cnbc.com/2025/06/22/oil-prices-jump-after-us-strikes-on-iran-raise-fears-of-supply-disruption.html