Oil Prices Crash After Iran Strikes U.S. Bases

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A few hours after the United States launched attacks on Iranian uranium enrichment facilities, the Iranian parliament expressed its support for the closure of the Strait of Hermoz – one of the most important ways in the world to transport fossil fuels, especially oil and LNG. The conflict in the Middle East, which started on June 13, 2025, entered the Israeli air strikes targeting Iranian military bases and leaders, on its tenth day. The situation increased dramatically as the United States joined Israel directly bombing Iranian nuclear enrichment sites – a step that was expected to be implemented only by the American military force.

On Monday afternoon, US East time, Iran launched six missiles in US military bases in Qatar, with explosions on Doha, according to Doha. Intuition. In response, Qatar closed the airspace “until another notice”, and the United Arab Emirates (United Arab Emirates) closed the airspace.

Despite the attacks, oil prices fell by more than seven percent, as raw in the vinyl vinyl decreased to less than $ 70 a barrel. According to Bloomberg of Javier Blas, the market is seen by the Iranian missile strike as a “useful counter attack”. The Strait of Hormuz is still open and oil is still flowing – including Iran’s output.

The initial impact of the conflict on the oil and gas markets remained relatively limited, as Brent crude prices gradually rose to about $ 79 a barrel – only $ 9 for the day before the start of the conflict. Despite the escalating tensions and president Trump’s warning for two weeks, prices fell to $ 75 by the end of last week. This contrasts sharply with the first days of Russia’s invasion of Ukraine in 2022, when oil prices increased by 17 %, reaching more than $ 110 a barrel in the first week. The humble height seen in the current conflict was largely due to the increase in shipping expenses, including high tankers and ship insurance installments.

Related: Lammy warns Iran against the Holus blockade

The market track can turn a large way if the oil and gas crossing methods are constantly threatened, instead of exposure to temporary or symbolic disorders. The Strait of Hormuz – which continues between Oman and Iran – is mentioned as a vital link between the Persian Gulf and the Gulf of Oman and the Arab Sea. It is the most important transitional point in the world, with the average daily flow of 21 million barrels, which represents nearly 21 % of global petroleum fluid consumption and about 25 % of global fluids.

Written by Shahiaar Xaguar for OilPrice.com

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