Oil Falls Nearly 4% as Iran's Retaliation Focuses on Regional US Military Bases
Oil prices slipped more than $3, or 4%, on Monday after Iran attacked the US military base in Qatar in retaliation for US attacks on its nuclear facilities, and took no action to disrupt oil and gas tanker traffic through the Strait of Hormuz.
Brent crude futures were down $2.91, or 3.8%, at $74.09 a barrel by 1:13 p.m. ET (1713GMT). US West Texas Intermediate crude (WTI) eased $2.8, or 3.8%, to $71.06, Reuters reported.
"Oil flows for now aren't the primary target and is likely not to be impacted, I think it's going to be military retaliation on US bases and/or trying to hit more of the Israeli civilian targets," said John Kilduff, a partner at Again Capital.
US President Donald Trump said he had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.
Israel also carried out fresh strikes against Iran on Monday including on capital Tehran and the Iranian nuclear facility at Fordow, which was also a target of the US attack.
At least two supertankers made U-turns near the Strait of Hormuz following US military strikes on Iran, ship tracking data shows, as more than a week of violence in the region prompted vessels to speed, pause, or alter their journeys.
About a fifth of global oil supply flows through the strait. However, the risk of a complete shutdown is low, analysts have said.
A telegraphed attack on a well defended US base could be a first step in reducing tensions provided there are no US casualties, Energy Aspects said in a post.
"Unless there are indications of further Iranian retaliation or escalation by Israel/the US then we may see some geopolitical risk premium come out of the price in subsequent days," it said.
Qatar said there were no casualties from the attack on the US military base.
Iran, which is OPEC's third-largest crude producer, said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called Trump a "gambler" for joining Israel's military campaign against Iran.
Meanwhile, Trump expressed a desire to see oil prices kept down amid fears that ongoing fighting in the Middle East could cause them to spike. On his Truth Social platform, he addressed the US Department of Energy, encouraging "drill, baby, drill" and saying, "I mean now."
Investors are still weighing up the extent of the geopolitical risk premium, given the Middle East crisis has yet to crimp supply.
HSBC expects Brent prices to spike above $80 a barrel to factor in a higher probability of a Strait of Hormuz closure, but to recede again if the threat of disruption does not materialize, the bank said on Monday.
Iraq's state-run Basra Oil Company said international oil majors including BP, TotalEnergies and Eni had evacuated some staff members working in oilfields.
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Arab News
an hour ago
- Arab News
Trump claims ceasefire between Iran and Israel after Iran's missile attack on US base in Qatar
DUBAI, United Arab Emirates: US President Donald Trump said that Israel and Iran had agreed to a 'complete and total ceasefire' soon after Iran launched a limited missile attack Monday on a US military base in Qatar, retaliating for the American bombing of its nuclear sites. Iran said that as long as Israel stopped its attacks early Tuesday morning, it would halt theirs. Israel did not immediately acknowledge any ceasefire, but there were no reports of Israeli strikes in Iran after 4 a.m. local. Heavy Israeli strikes continued in Tehran and other cities until shortly before that time. 'As of now, there is NO 'agreement' on any ceasefire or cessation of military operations,' Iranian Foreign Minister Abbas Araghchi wrote in a post on X. 'However, provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am Tehran time, we have no intention to continue our response afterwards.' His message was posted at 4:16 a.m. Tehran time. Araghchi added: 'The final decision on the cessation of our military operations will be made later.' Trump posted on Truth Social that the 24-hour phased-in ceasefire will begin about midnight Tuesday Eastern time. He said it would bring an 'Official END' to the war. The Israeli military declined to comment on Trump's statement and the office of Israeli Prime Minister Benjamin Netanyahu did not immediately respond to a message seeking comment. Speaking on Iranian state television, an overnight anchor repeatedly referred to a 'Trump-claimed' ceasefire, without saying whether Tehran accepted it. The anchor noted: 'Simultaneously with Trump's claim of a ceasefire, the Zionist enemy targeted several points in the cities of Tehran, Urmia and Rasht, including a residential area in the capital.' Israel's military put out a warning earlier that District 6 in Tehran could be struck. Early Tuesday, Iran, mirroring the language and maps of the Israeli military, put out a warning telling people in Ramat Gan it would target 'military infrastructure' there. Iran's attack Monday indicated it was prepared to step back from escalating tensions in the volatile region. The US was warned by Iran in advance, and there were no casualties, said Trump, who dismissed the attack as a 'very weak response.' Qatar condemned the attack on Al Udeid Air Base as 'a flagrant violation' of its sovereignty, airspace and international law. Qatar said it intercepted all but one missile, though it was not clear if that missile caused any damage. Iran said the volley matched the number of bombs dropped by the United States on Iranian nuclear sites over the weekend. Iran also said it targeted the base because it was outside of populated areas. Those comments, made immediately after the attack, suggested Iran wanted to de-escalate with the United States, something Trump himself said after the strikes early Sunday on Iran. Qatar Maj. Gen. Shayeq Al Hajjri said 19 missiles were fired at the base that is home to the Combined Air Operations Center, which provides command and control of air power across the region, as well as the 379th Air Expeditionary Wing, the largest such wing in the world. Trump said 14 missiles were fired, 13 were knocked down and one was 'set free' because it posed no threat. Iran announced the attack on state television, with a caption calling it 'a mighty and successful response' to 'America's aggression.' Just before the explosions, Iranian President Masoud Pezeshkian wrote on the social platform X: 'We neither initiated the war nor seeking it. But we will not leave invasion to the great Iran without answer.' Earlier reports that a missile was launched at a base housing American forces in Iraq were a false alarm, a senior US military official said. The official, who spoke on condition of anonymity because he was not authorized to comment publicly, said debris from a malfunctioning Iranian missile targeting Israel had triggered an alert of an impending attack on the Ain Assad base. Israel expands war to include symbolic targets On the 11th day of the conflict, Israel and Iran traded airstrikes that have become a reality for civilians in both countries since Israel started the war to target Tehran's rapidly advancing nuclear program. Iran struck Israel with a barrage of missiles and drones while Israel said it attacked 'regime targets and government repression bodies in the heart of Tehran.' But Israeli officials insisted they did not seek the overthrow of Iran's government, their archenemy since the country's 1979 Islamic Revolution. The latest strikes unfolded only hours after Trump himself mentioned the possibility of regime change a day after inserting America into the war with its stealth-bomber strike on three Iranian nuclear sites. 'If the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn't there be a Regime change???' he asked on his Truth Social website. White House press secretary Karoline Leavitt later described Trump as 'simply raising a question.' The US strikes over the weekend prompted fears of a wider regional conflict. Iran said the US had crossed 'a very big red line' with its risky gambit to strike with missiles and 30,000-pound bunker-buster bombs. Israel aims to wind down the war in the coming days, but that will depend on the Iranians, an Israeli official said on condition of anonymity to discuss high-level internal deliberations. The official spoke before Trump's announcement about a ceasefire. Israel's preferred outcome is for Iran to agree to a ceasefire and reenter negotiations with the US over its nuclear program, the official said. But Israel is prepared for the possibility of an extended low-intensity war of attrition or period of 'quiet for quiet,' in which it would closely monitor Iran's activities and strike if it identifies new threats. Tehran strikes open new chapter of war Before the ceasefire announcement, the Israeli military warned Iranians it would continue to attack military sites around Tehran as its focus shifted to include symbolic targets. The military issued the warning on the social platform X, though Iranians are struggling to access the outside world due to an Internet shutdown. In Tehran, Israel hit the headquarters of the military force that suppressed recent protests and blew open a gate at Evin prison. That facility is known for holding political activists. Iranian state television shared black-and-white surveillance footage of the strike at the facility known for holding dual nationals and Westerners often used by Iran as bargaining chips in negotiations with the West. Evin also has specialized units for political prisoners run by the paramilitary, all-volunteer Revolutionary Guard, which answers only to Supreme Leader Ayatollah Ali Khamenei. The facility is the target of both US and European Union sanctions. There were no immediate reports of casualties in Iran or significant damage. Iranian state television aired footage it said was shot inside Evin, with prisoners under control. However, the Washington-based Abdorrahman Boroumand Center for Human Rights in Iran said many families of detainees 'have expressed deep concern about the safety and condition of their loved ones' in the prison. According to an Israeli official familiar with the government's strategy, Israel is targeting these sites to put pressure on the Iranian administration but is not actively seeking to topple it. The official spoke on condition of anonymity to discuss internal government deliberations. The Israeli military also confirmed it struck roads around Iran's Fordo enrichment facility to obstruct access to the site. The underground site was one of those hit in Sunday's attack by the United States. The Israeli military did not elaborate. In Vienna, the head of the United Nations nuclear watchdog said he expected there to be heavy damage at the Fordo facility following Sunday's US airstrike there with sophisticated bunker-buster bombs. Several Iranian officials, including Atomic Energy Organization of Iran spokesman Behrouz Kamalvandi, have claimed Iran removed nuclear material from targeted sites ahead of time. Iran presses on attacking Israel Iran said its Monday attacks targeted the Israeli cities of Haifa and Tel Aviv, according to Iranian state television. Explosions were also heard in Jerusalem, possibly from air defense systems in action, and Israel's Magen David Adom emergency rescue service said there had been no reports of injuries. In Israel, at least 24 people have been killed and more than 1,000 wounded in the war. Israeli strikes on Iran have killed at least 974 people and wounded 3,458 others, according to the Washington-based group Human Rights Activists. The group, which has provided detailed casualty figures from Iranian unrest such as the protests surrounding the death of Mahsa Amini in 2022, said of those killed, it identified 387 civilians and 268 security force personnel. The US has evacuated some 250 American citizens and their immediate family members from Israel by government, military and charter flights that began over the weekend, a State Department official said. There are roughly 700,000 American citizens, most of them dual US-Israeli citizens, believed to be in Israel. Russian President Vladimir Putin, who leads one of Iran's closest allies, said Monday after meeting in Moscow with the Iranian foreign minister that they had explored 'how we can get out of today's situation.' Putin called the Israeli and American attacks on Iran an 'absolutely unprovoked aggression.'
Arab News
3 hours ago
- Arab News
NGOs urge closing of Gaza aid group, warn of possible ‘war crimes' liability
UNITED NATIONS, United States: More than a dozen human rights organizations called Monday on the Gaza Humanitarian Foundation (GHF), whose aid distribution has seen chaotic and deadly scenes, to cease its operations, warning of possible complicity in war crimes. 'This new model of privatized, militarized aid distribution constitutes a radical and dangerous shift away from established international humanitarian relief operations,' the 15 organizations said in an open letter. It called the US-backed group's operations 'dehumanizing, repeatedly deadly and (contributing) to the forced displacement of the very population it purports to help.' The groups urged GHF and all the organizations and individuals who have been supporting its work, to 'to cease their operations.' 'Failure to do so may expose these organizations... to further risk of criminal and civil liability for aiding and abetting or otherwise being complicit in crimes under international law, including war crimes, crimes against humanity, or genocide in violation of international law,' the letter warned. The signatories include the International Federation for Human Rights (FIDH), the Palestinian Center for Human Rights, the American Center for Constitutional Rights, and the International Commission of Jurists. An officially private effort with opaque funding, GHF began operations on May 26 after Israel completely cut off supplies into Gaza for more than two months, sparking warnings of mass famine. The United Nations and major aid groups have refused to cooperate with the foundation over concerns it was designed to cater to Israeli military objectives. According to figures issued by the health ministry in the Hamas-run Gaza Strip, at least 450 people have been killed and nearly 3,500 injured since GHF began distributing meal boxes in late May. GHF has denied responsibility for deaths near its aid points, contradicting statements from witnesses and Gaza rescue services.
Saudi Gazette
4 hours ago
- Saudi Gazette
Trump announces complete ceasefire between Israel and Iran, ending 12-day war
WASHINGTON — U.S. President Donald Trump announced on Monday that Israel and Iran have agreed to a complete and total ceasefire, bringing an end to what he called 'The 12 Day War.' In a statement posted on his social media platform, Trump said the ceasefire would begin in approximately six hours, following the completion of final military operations by both sides. The truce will last for 12 hours, after which the conflict will be officially declared over. 'Iran will start the ceasefire, and upon the 12th hour, Israel will follow suit,' Trump said, adding that an 'official end' to the hostilities will be marked at the 24th hour. He praised both nations for showing 'stamina, courage, and intelligence' in choosing to end the conflict. The announcement follows days of escalating military exchanges between Israel and Iran that raised fears of a broader regional war. Trump hailed the ceasefire as a moment the world would salute, urging all parties to remain 'peaceful and respectful.' 'This is a war that could have gone on for years, and destroyed the entire Middle East, but it didn't—and never will,' Trump stated.
