Oil Prices Drop 4% After Iran Attacks U.S.

Oil prices fell sharply on today, Monday, June 23, 2025, after Iran launched a missile attack on the U.S.-run Al Udeid air base in Qatar, retaliating for U.S. airstrikes on its nuclear facilities.

The attack followed U.S. strikes on Iran’s Natanz, Fordo, and Isfahan nuclear sites, which President Donald Trump called “very successful” on his Truth Social platform, claiming the facilities were “obliterated.”

Brent crude futures dropped $2.91, or 3.8%, to $74.09 a barrel by 1:13 p.m. ET, while U.S. West Texas Intermediate (WTI) crude fell $2.80, or 3.8%, to $71.06, as Iran avoided disrupting oil tanker traffic through the Strait of Hormuz.

Iran’s Atomic Energy Organization reported no radioactive contamination, and Qatar confirmed no casualties at the base, easing fears of immediate escalation.

A Calmer Oil Market Amid Tensions

The Strait of Hormuz, through which a fifth of global oil supply flows, remained open, calming markets.

At least two supertankers made U-turns near the strait after the U.S. strikes.

However, no major disruptions occurred, according to ship tracking data.

Analysts noted that Iran’s focus on military targets, rather than oil infrastructure, reduced the geopolitical risk premium.

“Oil flows aren’t the primary target,” said John Kilduff of Again Capital, predicting Iran would prioritize strikes on U.S. bases or Israeli civilian targets.

Qatar closed its airspace, and the UAE followed suit, based on flight paths and air traffic control audio.

Energy Aspects suggested the telegraphed attack on a well-defended U.S. base could de-escalate tensions if no U.S. casualties are reported, potentially lowering oil prices further.

U.S. and Israel Intensify Strikes

The U.S. strikes, codenamed Operation Midnight Hammer, marked a shift from diplomacy to direct action.

Trump, who joined Israel’s campaign against Iran, urged the U.S. Department of Energy to “drill, baby, drill” to keep oil prices low amid fears of a spike.

Israel also conducted fresh strikes on Tehran and the Fordo nuclear facility on Monday, intensifying the conflict.

Iran, OPEC’s third-largest crude producer, vowed retaliation, calling Trump a “gambler” and expanding its list of “legitimate targets.”

Industry Response and Outlook

Iraq’s Basra Oil Company reported that oil majors like BP, TotalEnergies, and Eni evacuated some staff from oilfields, signaling caution.

HSBC predicted Brent prices could spike above $80 a barrel if the Strait of Hormuz faces closure risks but would fall if disruptions are avoided.

For now, investors see limited supply impacts, keeping prices volatile but contained.

As the Middle East teeters on the edge of broader conflict, will Iran’s restraint on oil routes hold, or will escalation drive prices higher? The world watches anxiously.

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