In a sign of reduced concerns regarding escalating tensions in the region, oil prices fell by approximately 6 percent yesterday after Iranian rockets targeted Al Udeid Air Base in Qatar.
U.S. crude futures dropped by 5.8 percent, settling at $69.57 per barrel, while Brent crude futures decreased by 5.7 percent, reaching $72.59 per barrel.
John Kilduff, a partner at Again Capital, stated, “Oil flows are not a primary target, and they are unlikely to be impacted. I believe the response will be limited to military actions against U.S. bases and attempts to strike more Israeli civilian targets.”
In the meantime, Wall Street investors pushed stocks higher as oil prices decreased, viewing the Iranian retaliatory strikes on the airbase in Qatar as limited and unlikely to have broader economic repercussions.
The S&P 500 index rose by nearly 1 percent, and West Texas Intermediate crude fell below $70, as Iran’s response alleviated fears that the conflict would immediately disrupt supplies from the Middle East.