Iran launched missile strikes on US bases in Qatar and Iraq in response to US-Israeli attacks on its nuclear facilities. Despite the escalation, oil prices fell over 6%—contrary to typical market reactions.
Key Drivers Behind the Oil Price Drop:
• Iran’s strikes were calibrated and symbolic, reportedly with advance warning and no casualties, avoiding direct hits on energy infrastructure or key shipping lanes like the Strait of Hormuz. • Tanker traffic through the region remained uninterrupted, easing fears of a supply shock. • As the risk to oil flows faded, traders quickly reversed bets on higher prices, causing Brent and WTI to tumble.Outlook:
• Volatility remains high. Any future attacks on oil facilities or attempts to block the Strait could send prices soaring. • For now, markets are relieved, but the risk of renewed escalation—and price spikes—persists.
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