Oil prices nosedive 7% after Iran attacks US airbase, not tankers

Oil prices settled down more than 7% on Monday, losing more than $5 a barrel after Iran took no action to disrupt oil and gas tanker traffic through the Strait of Hormuz, but instead attacked a US military base in Qatar in retaliation for US attacks on its nuclear facilities.

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Brent crude futures closed down $5.53, or 7.2%, at $71.48 a barrel, while US West Texas Intermediate crude (WTI) eased $5.53, or 7.2%, to $68.51.

Brent’s 7.2% drop was the steepest since August 2022. The benchmark traded in a $10 range, the widest since July 2022.

Both benchmarks were down nearly 9% in after-hours trading.

"Oil flows for now aren’t the primary target and are likely not to be impacted, I think it’s going to be military retaliation on US bases and/or trying to hit more of the Israeli civilian targets," said John Kilduff, a partner at Again Capital.