Oil Drops 7% After Iran Attacks US Air Base in Qatar
Oil prices dropped sharply on Monday after Iran fired missiles at the US Al-Udeid Air Base in Qatar. This attack was Iran’s answer to the US bombing Iranian nuclear sites.
Oil Prices Drop
On Monday, oil prices went down sharply. Brent crude oil fell by 7.2% to $71.48 per barrel, and US West Texas Intermediate (WTI) also dropped 7.2% to $68.51 per barrel.
Qatar said it stopped several missiles aimed at the Al-Udeid Air Base. The country strongly condemned the attack, calling it a violation of its airspace and sovereignty.
John Kilduff from Again Capital told Reuters that the attacks are not directly targeting oil flows right now, so supply is not being affected.
Investors are watching the situation closely to see if the risk spreads to oil supplies in the future.
Worries Around the Strait of Hormuz
After US airstrikes on Iranian nuclear sites, at least two large oil tankers changed course near the Strait of Hormuz. The conflict between Iran and Israel is making some ships stop or change their routes.
The Strait of Hormuz is a very important waterway — nearly 20% of the world’s oil supply passes through it. On Sunday, Iran’s parliament voted to close the strait, according to Press TV. But this still needs final approval from the national security council.
If the strait is closed, energy prices could rise. However, experts believe this is unlikely because such a move would also hurt Iran and its neighboring countries.
HSBC said oil prices could go above $80 per barrel if the strait is closed, but would likely fall again if that doesn’t happen.
Trump Calls for More Drilling
US President Donald Trump said he wants oil prices to stay low. On Monday, he told his administration to increase oil drilling.
In a message on Truth Social, Trump said, “drill, baby, drill,” and added, “I mean now.” Energy Secretary Chris Wright responded, “We’re on it!”
This comes as people worry that the US attack on Iran could cause energy prices to rise.
Published: 24th June 2025
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