Oil Prices Drop After Iran Strikes US Base

Oil prices plunged by 6-7% after Iran retaliated against U.S. airstrikes on its nuclear facilities by launching missiles at the U.S. Al Udeid military base in Qatar, but did not target oil infrastructure or disrupt shipments through the Strait of Hormuz. Despite earlier threats from Iran to close the Strait and initial fears of a supply shock, both Qatari and Iranian oil exports continued without disruption. Analysts characterized Iran's response as a symbolic and restrained counterattack, which helped calm markets. Oil prices fell below pre-conflict levels, with the market reaction subdued compared to previous geopolitical crises. President Trump and officials warned of potential volatility, but the absence of direct threats to energy transit routes led to market stabilization. While the risk of escalation remains, closure of the Strait of Hormuz is considered unlikely for now.