Global oil prices dropped sharply on Monday after Iran launched a retaliatory missile strike on a US military base in Qatar, following the US airstrikes over the weekend that targeted Iranian nuclear sites.

As of 1815 GMT, West Texas Intermediate (WTI) crude futures declined by 6.5% to $69.96 per barrel, while Brent crude futures dropped 6.4% to $72.07 a barrel—reaching their lowest point in the past 10 days.

A senior US defense official confirmed there were no American casualties from the Iranian missile strike, which analysts noted did not target any major oil facilities or infrastructure.

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Energy expert John Kilduff of Again Capital described Iran’s move as “somewhat measured” and distant from densely populated areas, calling it a “face-saving measure.” He expressed hope that this development could serve as an opportunity for diplomacy.

Much of the market’s concern remains centered on the Strait of Hormuz—a vital maritime passage for global oil shipments. Iran has historically used threats to close the strait during times of heightened tension but has never acted on those warnings.

Kilduff stated that current indicators suggest the conflict is unlikely to immediately affect oil supply routes in the region, particularly through the Strait of Hormuz.