Volatility in Oil Prices Amid Middle East Tensions

Oil prices experienced a dramatic drop of over 6% on Monday following heightened Middle East tensions. Iran's retaliation for U.S. attacks on its nuclear sites led to a missile strike on a U.S. military base in Qatar, although crucial oil and gas flows remain unaffected through the Strait of Hormuz.

Market shifts saw Brent crude futures decrease by $4.90, landing at $72.19 a barrel, while U.S. West Texas Intermediate crude slipped by $4.60 to $69.23. Initial market spikes were noted after U.S. President Donald Trump claimed successful airstrikes on Iran's nuclear facilities, intensifying the regional conflict.

Investors are closely monitoring the geopolitical landscape, as Iran's OPEC-leading crude output power resumes stability and energy analysts predict minimal impact on global oil supply. The situation reflects complex geopolitical risk factors influencing oil prices and potential supply disruptions in the Middle East.

(With inputs from agencies.)