OIL PLUNGE BEWTEEN IRAN ISRAEL WAR !

Breakdown of why oil prices dropped sharply:

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 U.S. military base in Qatar in retaliation for U.S. attacks on its nuclear facilities.

• Missile strike was symbolic, not supply-disrupting

  
  

  Markets had initially surged on fears that Iran’s retaliation would threaten oil traffic through the Strait of Hormuz. But when Iran targeted the Al Udeid airbase in Qatar—rather than oil infrastructure or shipping—they interpreted it as a limited, symbolic response, reducing fears of supply interruption.

• Reversal of earlier gains

  
  

  Oil initially jumped ~6%, but momentum quickly reversed. By market close, Brent and WTI both fell around 7%, wiping out the gains.

• Geopolitical premium deflates

  
  

  With no immediate threat to tanker traffic, the premium that had built into price faded. Analysts called Iran’s move "symbolic," a de-escalation rather than escalation.

📝 Summary

Factor	Impact on Oil Price
Iran’s missile strike	Reduced geopolitical risk
No attack on oil routes	Lowered concerns over supply disruptions
Symbolic retaliation	Signaled potential de-escalation, calming markets

In short: oil plunged because the market saw Iran’s strike as limited and non-threatening to energy flows, reversing the earlier risk-driven rally.