Doha: Crude oil prices fell around 7 percent on Monday, after Iran said it had launched a missile attack on a US base in Qatar. Investors appeared to take the retaliatory action as being limited, following days of uncertainty over whether Tehran would close the Strait of Hormuz. US President Donald Trump later said that Iran had given the US advance notice of the attack. Earlier, Washington also called on China to pressure Tehran not to close the vital waterway.

According to France24.com, the attack by Iran comes amidst escalating tensions in the region, raising concerns about potential disruptions to oil supply routes. The Strait of Hormuz is a critical passageway through which a significant portion of the world’s oil supply is transported. Any threat to its security can have profound implications on global oil markets.

The market reaction saw oil prices plummeting, as investors reassessed the immediate impact of Iran’s actions. The decline in oil prices reflects a temporary relief among traders that the situation might not escalate further, despite the geopolitical tensions.

US President Donald Trump’s remarks about receiving advance notice from Iran have been seen as a measure to de-escalate the situation. Meanwhile, the US administration’s appeal to China to exert influence over Tehran highlights the international dimensions of this crisis and the global efforts to maintain open trade routes.

The current developments underscore the volatility in the oil markets, driven by geopolitical events. As the situation unfolds, market participants continue to monitor any further actions from Iran and responses from the international community.