HOUSTON: Oil prices slipped more than US$3, or 4 percent, on Monday (Jun 23) after Iran attacked the US military base in Qatar in retaliation for US attacks on its nuclear facilities, and took no action to disrupt oil and gas tanker traffic through the Strait of Hormuz.
Brent crude futures were down US$2.91, or 3.8 percent, at US$74.09 a barrel by 1.13pm ET (1.13am, Singapore time) US West Texas Intermediate crude (WTI) eased US$2.8, or 3.8 percent, to US$71.06.
Explosions were heard over Qatar’s capital Doha on Monday, a Reuters witness reported, shortly after a Western diplomat said there had been a credible Iranian threat against the US-run al Udeid air base in the Gulf Arab state since midday.
“Oil flows for now aren’t the primary target and is likely not to be impacted, I think it’s going to be military retaliation on US bases and/or trying to hit more of the Israeli civilian targets,” said John Kilduff, a partner at Again Capital.
Qatar said it closed its airspace, while United Arab Emirates’ airspace was closed based on flight paths and air traffic control audio, according to Flightradar.
US President Donald Trump said he had “obliterated” Iran’s main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.
Israel also carried out fresh strikes against Iran on Monday including on capital Tehran and the Iranian nuclear facility at Fordow, which was also a target of the US attack.
At least two supertankers made U-turns near the Strait of Hormuz following US military strikes on Iran, ship tracking data shows, as more than a week of violence in the region prompted vessels to speed, pause, or alter their journeys.
