Crude tanks 6% as Iran hits US base: 'If serious, they'd hit tankers,' says Brookings fellow

Oil prices plunged as Iran fired missiles at a major U.S. air base in Qatar, a move widely seen as retaliation for the bombing of its nuclear facilities.

West Texas Intermediate crude dropped 6% to $69.50 a barrel, its lowest in a week. Brent crude fell 4.5%.

The unexpected market reaction suggests investors are not bracing for a broader conflict. “If Iran were serious about retaliation, it’d sink an oil tanker in the Straits of Hormuz,” said Robin Brooks, a senior fellow at the Brookings Institution. 

“The fact that it isn’t doing that means it’s bending the knee.”

Iran’s Islamic Revolutionary Guard Corps claimed responsibility for the missile barrage, targeting Al-Udeid Air Base in Qatar, home to the largest U.S. military installation in the Middle East. Iran labeled the strike "Operation Besharat Fatah" and described it as a "devastating and powerful missile attack."

The move follows a U.S.-led strike—reportedly directed by former President Donald Trump—on Iranian nuclear facilities. In a fiery statement, Iran accused the U.S. of violating international law and vowed not to leave any attack on its sovereignty "unanswered."

Despite the escalating rhetoric, markets interpreted the strike as a limited gesture rather than the start of open warfare.

U.S. equities ticked higher on the news. The S&P 500 rose 0.6%, the NASDAQ climbed 0.7%, and the Dow gained 0.5%.