Oil falls more than 7%, Brent closes above $71

Oil

Oil prices deepened losses today, June 23, as Iran held back from closing the Strait of Hormuz in response to US and Israeli attacks on its territory.

Brent crude futures for August delivery plunged 7.44%, or $5.73, to settle at $71.28 a barrel. WTI crude futures for August delivery lost 7.22%, or $5.33, to $68.51 a barrel.

Iran launched an attack on the US Al Udeid airbase in Qatar’s capital Doha today, while Bahrain temporarily closed its airspace as a precaution.

This indicates that Iran is focusing on targeting US interests in the Middle East, rather than implementing its threat to close the Strait of Hormuz, which is responsible for the passage of 20% of the world's oil supplies.

Moreover, the US Department of Defense confirmed that the Iranian attack on Al Udeid Air Base was "largely symbolic."

Ministry officials reported that Tehran had informed Doha and Washington in advance of the attack, and Iranian officials confirmed this in statements to The New York Times.