DTN Oil Update
Oil Futures Sink More Than $5 After Iran Attacks US Base in Qatar
HOUSTON (DTN) -- Oil futures sank more than $5 to start the week Monday, following missile attacks from Iran on a U.S. base in Qatar in retaliation for the U.S. strikes on Iranian nuclear facilities over the weekend.
The front-month NYMEX WTI futures contract for August delivery plummeted by $5.10 barrel (bbl) to $68.74 bbl while August ICE Brent futures contract fell by $5.26 to $71.75 bbl.
July RBOB gasoline futures dropped by $0.1119 to $2.2176 gallon, and the front-month ULSD futures contract retreated $0.1718 to trade near $2.37 gallon.
The U.S. Dollar Index fell by 0.307 points to 97.975 against a basket of foreign currencies.
In an escalation of the Israel-Iran conflict, the United States bombed three Iranian nuclear assets Sunday morning. In response, the Iranian parliament voted to approve the closure of the Strait of Hormuz -- a vital transit route of 20% of global oil and product flows -- which could lead to significant oil supply disruptions.
However, as Iran's main source of income is oil exports, particularly to China, analysts have discarded the possibility of the strait's closure. Iran shipped 1.5 million barrels per day (bpd) through the Strait of Hormuz in the first three months of 2025, according to the U.S. Energy Information Administration.
Nevertheless, on Monday, Iran launched missile attacks on a U.S. military base in Qatar, an action expected to provoke a stronger military response from the United States, further destabilizing the Middle East and threatening oil flows.
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