Oil Prices Fall As Iran’s ‘Weak’ Retaliation Gives Way To Ceasefire

Oil prices tumbled Monday after Iran’s retaliatory strike on a U.S. military base in Qatar failed to inflict any damage, offering investors a sign that Tehran’s response to President Donald Trump’s crushing strike on its nuclear program may have already peaked.

The price of U.S. benchmark crude dropped over 7% to settle at $68.51 after briefly spiking above $78 earlier in the day. Markets initially surged amid fears that Iran would attempt to close the Strait of Hormuz, a critical shipping lane through which 20% of the world’s daily oil supply flows. But those fears faded quickly after Iran’s missile barrage ended with zero casualties and no damage.

All missiles fired by Iran at Al Udeid Air Base were intercepted. No American troops were harmed. Iran reportedly gave advance warning of the strike, a clear indication it was more symbolic than strategic.

President Trump addressed the situation on Truth Social, downplaying the attack and suggesting Iran’s retaliation was both expected and ineffective.

“Iran has officially responded to our Obliteration of their Nuclear Facilities with a very weak response, which we expected, and have very effectively countered,” Trump wrote. “Most importantly, they’ve gotten it all out of their ‘system,’ and there will, hopefully, be no further HATE.”

Within hours, Trump announced that Israel and Iran had agreed to a ceasefire, further calming global energy markets and signaling a possible end to the brief but intense conflict.

With Iran’s retaliation falling flat and a ceasefire now in place, oil markets are expected to stabilize as fears of a prolonged regional war subside.