FX.co ★ Crude Oil Slides 7% After Iran Strike Causes No Casualties

WTI crude oil futures fell by 7.2%, closing at $68.50 per barrel on Monday. This decline followed Iran's missile strike on a U.S. airbase in Qatar, which fortunately resulted in no casualties, thus alleviating immediate concerns about escalation in the Middle East. The missile attack, in retaliation for U.S. actions against Iranian nuclear facilities, was successfully intercepted by Qatari defenses. This led to a significant drop from the earlier peak of $74.30, the highest since January. Although the markets are now factoring in the possibility of a de-escalation, considerable risks remain, notably the potential closure of the Strait of Hormuz by Iran. This strait is crucial for about 20% of the world's oil shipping. Despite Iran's parliament supporting this move, the ultimate decision lies with the national security council. U.S. officials, including Secretary of State Marco Rubio, have cautioned that such an action would be disastrous for Iran's economy and have called on China, Iran's largest oil customer, to step in diplomatically.