Oil Prices Fall As Iran’s ‘Weak’ Retaliation Gives Way To Ceasefire

Oil prices fell Monday after Iran’s casualty-free attack on a United States military base in Qatar, with investors hoping the attack signals the limits of Tehran’s retaliatory ability.

Prices spiked 6% after Iran threatened to close the Strait of Hormuz in response to President Donald Trump’s announcement that the United States had bombed an Iranian nuclear facility. Some 20% of the world’s daily oil supply passes through the strait, according to the AP.

On Monday, Iran fired missiles at the Al Udeid Air Base, all of which were intercepted. There were no casualties. In response, “the price of a barrel of benchmark U.S. oil had dropped 7.2% to settle at $68.51 after briefly topping $78,” according to the AP.

Trump noted the de-escalatory nature of the attack in a post on Truth Social, emphasizing that there were no casualties, all missiles were successfully intercepted, and Iran warned the United States of the attack beforehand.

“Iran has officially responded to our Obliteration of their Nuclear Facilities with a very weak response, which we expected, and have very effectively countered.”

“Most importantly, they’ve gotten it all out of their “system,” and there will, hopefully, be no further HATE.”

Hours later, Trump announced that Israel and Iran agreed to a ceasefire. Markets will likely stabilize in the coming days.