ISLAMABAD: Global oil prices declined by nearly 4% on Monday after Iran launched missile strikes targeting U.S. military installations in Qatar and Iraq. The market reacted calmly, with no immediate threat reported to energy infrastructure or shipping routes.
According to international market data:
- Brent crude dropped by approximately 3.8%, settling at $74.09 per barrel.
- West Texas Intermediate (WTI) fell to $71.06 per barrel, reflecting a similar percentage decline.
Market Calm Despite Regional Tensions
Analysts attributed the price drop to the nature of Iran’s response, which focused exclusively on military targets rather than oil production sites or key transport corridors such as the Strait of Hormuz. The maritime route, which is essential for global oil supply, remained open and unaffected.
Earlier fears of a sharp supply disruption had pushed prices higher temporarily, but as clarity emerged over the limited scope of Iran’s retaliation, investor concerns eased.
Geopolitical Background
The market correction comes in the wake of last week’s U.S. airstrikes on Iran’s underground nuclear facility at Fordow, an action that significantly escalated regional tensions. Iran’s counterstrike was widely viewed as a measured military response designed to avoid further escalation while demonstrating a show of force.
Despite this exchange, major oil-producing nations, particularly Saudi Arabia and the UAE, have indicated that they maintain sufficient spare capacity, which is helping keep global oil markets relatively stable.
Future Outlook
While the situation remains volatile, energy analysts note that the absence of direct threats to oil infrastructure has prevented a sustained price surge. However, any further escalation involving strategic oil routes—especially the Strait of Hormuz—could quickly reverse the trend.
Experts warn that if tensions persist or widen, Brent crude could rise above $100 per barrel, depending on the extent of disruption.
Policy Monitoring
International markets are now closely watching diplomatic developments and energy policy responses, particularly from:
- OPEC+ member states
- U.S. domestic producers
- Shipping and insurance sectors operating in the Gulf
This story has been reported by PakTribune. All rights reserved.
