June 23, 2025 – Global oil markets saw a sharp downturn on Monday, with prices slumping over 6% following Iran’s retaliatory missile strike on the Al Udeid U.S. Airbase in Qatar. Despite the heightened geopolitical tensions, investors appeared relieved that oil and gas traffic through the Strait of Hormuz remained unaffected.
Brent and WTI Crude Fall Over $5
By 2:13 p.m. ET (1813 GMT), Brent crude futures were down $4.90, or 6.3%, trading at $72.19 per barrel, while U.S. West Texas Intermediate (WTI) dropped $4.60, or 6.2%, to $69.23 per barrel.
The drop followed an initial surge in prices over the weekend, when markets opened with Brent spiking nearly 6% to a five-month high. The rally came after U.S. President Donald Trump announced that U.S. airstrikes had “obliterated” key Iranian nuclear facilities, aligning with Israeli military efforts targeting Tehran.
Iran Responds But Spares Oil Infrastructure
Iran, a major player within OPEC and the bloc’s third-largest oil producer, declared its military response was directed at legitimate U.S. targets. On Monday, Tehran confirmed that its missile strike on the Al Udeid Airbase was a direct reaction to U.S. attacks on its nuclear program.
However, Iran notably refrained from targeting oil tankers or infrastructure in the Strait of Hormuz, a critical chokepoint for global energy supply through which nearly 20% of the world’s oil passes.
Analysts Say Market Reacted to Strategic Restraint
Energy analysts suggest that while the conflict poses a serious geopolitical risk, Iran’s decision to avoid oil disruption helped ease fears in the market.
“So far, Iran’s focus seems to be on military sites rather than energy flows,” said John Kilduff, partner at Again Capital. “That’s why we’re seeing prices fall instead of spike.”
A source close to QatarEnergy confirmed that production and shipments remained unaffected after the attack, and no additional Iranian strikes were reported on other U.S. military facilities in the region.
Strait of Hormuz Stays Open – For Now
Despite concerns, Iran has made no move to block or disrupt the Strait of Hormuz. Matt Smith, a lead oil analyst at Kpler, remarked:
“This appears to be the lesser of two evils. A full shutdown of the Strait still seems unlikely, even under current tensions.”
Market experts agree that any attempt to halt oil movement through the strait would have far-reaching consequences—but for now, oil supply routes remain stable.
Conclusion
While the missile strike in Qatar marks a serious escalation in Middle East tensions, oil markets took solace in the fact that energy infrastructure and global supply chains remain untouched. The steep drop in crude prices reflects investor confidence that, for now, military actions won’t spill over into oil disruptions—though the situation remains volatile.
