Crude Oil Prices Plunge Despite Iranian Strike on American Bases in Middle East

Crude oil prices in the United States dropped significantly on Monday — even after Iran retaliated against America’s attack on its nuclear facilities by launching missiles toward American military bases in Qatar and Iraq.American oil futures fell $5.33, or 7.22 percent, to close at $68.51 per barrel. The price in now below where it was when Israel launched its first attacks against Iran earlier this month.On Monday, President Trump took to his social media platform, Truth Social, with a plea aimed at curbing potential oil price spikes in light of the conflicts in the Middle East. “EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!” the president posted.Fears that the American airstrikes on Iran’s nuclear facilities could destabilize the energy supply in the region did not materialize on Monday. Wall Street analysts had previously voiced concerns, noting that production might be cut if prices slump to multiyear lows, especially after Mr. Trump’s tariffs were imposed and recent decisions by OPEC+ to boost supply.Mr. Trump added a follow-up message to further emphasize his pro-oil stance, saying, “To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!” Asked who the target audiences were for Mr. Trump’s posts, a White House spokesman, Harrison Fields, told Reuters, “The president wants producers to act in the nation’s interest. Keep prices stable or risk enabling adversaries.” Analysts say that global markets are not out of the woods yet and are still bracing for potential repercussions if Iran tries to close the Strait of Hormuz, a vital waterway for global oil shipments. Given that 20 percent of total global oil consumption — or about 20 million barrels per year — begins by flowing through the strait, a closure could trigger severe disruptions to economies around the globe.Secretary Rubio has urged China — which buys 90 percent of Iran’s oil exports — to use its influence to prevent Iran from escalating further by closing the strait. “I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Strait of Hormuz for their oil,” Mr. Rubio said Sunday on Fox News.Mr. Rubio also characterized any move to close the strait as “economic suicide” for Iran. “If they take that step, they’ll be hurting their own economy significantly. It’s a terrible mistake,” he said, but noted, “We retain options to deal with that.” On Sunday, the Iranian parliament approved a measure to close the Strait of Hormuz in response to the attacks on its nuclear sites at Natanz, Isfahan, and the underground Fordow facility, but said the decision whether to do so ultimately rests with the nation’s Supreme National Security Council. If it follow through on the threat, the fallout could be significant, as alternative shipping routes for oil are limited, and few options could accommodate the volume of crude oil that passes through the strait.China, which gets about half of its imported oil from the Middle East, on Monday stressed the importance of keeping the Persian Gulf and the Strait of Hormuz unimpeded. “Maintaining security and stability in the region is in the common interests of the international community,” China’s foreign ministry spokesman, Guo Jiakun, said.

Crude Oil Prices Plunge Despite Iranian Strike on American Bases in Middle East

More from the New York Sun

The Cloisters Embraces the Ancient Americas, With Uneven Results

Hunter Biden Claims Dad Was Pushed Out of Presidential Race Because He Was Not Part of the ‘Epstein Class’

More from the New York Sun

The Cloisters Embraces the Ancient Americas, With Uneven Results

Hunter Biden Claims Dad Was Pushed Out of Presidential Race Because He Was Not Part of the ‘Epstein Class’

Colbert Marks the End of ‘The Late Show’ With Performance by Paul McCartney, but No Explicit Reference to Trump

The Cultural Significance of Nicki Minaj’s Conservatism

News Aggregators Reinforcing Political Ignorance, Especially for Young Americans

‘Whites-Only’ Community Sued After Rejecting Woman Over Her Jewish Ancestry, Black Husband

Trump’s Tariffs Are Fueling Voters’ Frustration Over Affordability

Newsom Suggests Universal Basic Capital as Solution to AI-Driven Unemployment