The sharp decline was attributed to Iran’s response to the U.S. attack on its nuclear facilities last weekend.
The North Sea crude, a benchmark in Europe, closed trading on the Intercontinental Exchange at $5.53 below the $77.01 closing price on Friday.
This return of crude prices to the level before the Israeli attacks on Iran, which began on June 13, is attributed to Iran’s announced attack on the American base in Al-Udeid, Qatar.
“It is a military target, apparently outside any populated center, and it seems the oil infrastructures were not affected,” commented John Kilduff of Again Capital in statements to AFP.
More than a new escalation, investors see this as “a measure taken for the Iranians to save face,” according to the analyst.
Currently, “it is clear that this has no impact” on the Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman and through which 20% of the world’s oil transits, highlighted John Kilduff.
A blockage of this passage would significantly increase oil prices.
However, Iran is not interested in preventing the passage of tankers, thus depriving itself of oil exports, John Kilduff assessed.
