WTI crude oil futures tumbled 7.2% to settle at $68.50 per barrel on Monday, after Iran's missile strike on a US airbase in Qatar resulted in no reported casualties, easing fears of an immediate escalation in Middle East tensions.
The attack, launched in retaliation for US strikes on Iran's nuclear facilities, was intercepted by Qatari defenses, prompting a sharp retreat from $74.30—the highest level since January.
While markets are now pricing in a potential de-escalation, significant risks remain—chief among them the threat of Iran attempting to close the Strait of Hormuz, a vital chokepoint for about 20% of global oil flows.
Although Iran's parliament reportedly backed the move, the final decision rests with the country's national security council.
US officials, including Secretary of State Marco Rubio, warned that such a step would be "economic suicide" for Iran and urged China—its largest oil customer—to intervene.
