Oil Crashes 6%—Geopolitical Shock Fails to Prop Up Prices After Iran Strikes U.S. Base in Qatar
Black gold bleeds out as markets shrug off Middle East escalation
Traders yawn at geopolitical risk
Crude tanks despite what should be textbook price-supporting headlines—another reminder that oil markets now dance to macroeconomics rather than geopolitics. The 6% plunge comes as recession fears outweigh supply concerns, with traders treating Middle East tensions like background noise.
Finance never fails to disappoint
Wall Street's 'buy the rumor, sell the news' playbook strikes again—this time with missiles involved. The selloff proves even acts of war can't compete with demand destruction fears in today's market calculus. Guess those 'geopolitical premium' analysts will need to find new PowerPoint slides.
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Underneath the surface, the attack may be more symbolic than aggressive. Sources told Axios that Iran informed Qatar of the attack before it actually took place. In addition, the TRUMP administration was also in the know.
Strait of Hormuz Left Untouched as Iran Attack Results in Zero Casualties
Iran’s attack resulted in zero casualties and did not affect any oil infrastructure sites, while the Strait of Hormuz, a global passageway for oil, continues to FLOW with no disruptions.
“The base that was targeted in the attack by the powerful Iranian forces was far from urban facilities and residential areas in Qatar,” said Iran’s Supreme National Security Council.
Another indicator that the Israel-Iran war is easing and could soon come to an end is the market’s response. The S&P 500 (SPX) is well in the green, recovering from an initial drop following the attack.
