Oil prices fall 6% after Iran attack on US military base

Oil prices sank more than six percent Monday after Iran attacked a US military base in neighboring Qatar in retaliation for US weekend strikes on Iranian nuclear facilities.

Near 1815 GMT, futures for West Texas Intermediate fell 6.5 percent to $69.96 a barrel, while Brent oil futures dropped 6.4 percent to $72.07 a barrel, its lowest level in 10 days.

Kuwait said it was closing its airspace “until further notice” on Monday after a similar move from Bahrain as Iran attacked a US base in Qatar in retaliation for American strikes in Iran.

“In the interest of the country’s security and safety, and in light of the precautionary measures taken in a number of neighbouring countries, which include the closure of their airports and airspace, the State of Kuwait announces the temporary closure of its airspace as a precautionary measure, effective today until further notice” the Kuwaiti Directorate General of Civil Aviation said in a statement.

Iran launched missiles at US military bases in Qatar and Iraq on Monday evening, official media reported, in what state TV called a “powerful” response to recent American strikes on key nuclear sites.

“The operation of Iranian missiles against American bases located in Qatar and in Iraq has begun, and is called ‘Blessing of Victory’,” the official press agency IRNA said. AFP journalists reported hearing explosions in Doha, the capital of Qatar, home to the largest US base in the region.

Explosions could be heard across Doha on Monday evening, according to AFP journalists, shortly after Qatar closed its airspace, citing regional developments following US strikes on Iran.

The blasts could be heard in central Doha and in Lusail north of the Qatari capital, and projectiles could be seen moving across the night sky. Iran said attack on US base does not ‘pose any threat’ to Qatar.

Qatar said it had successfully intercepted an Iranian missile attack Monday on the United States’ Al Udeid base, the largest US military facility in the Middle East.

Qatar condemned the attack and called it a  “flagrant violation” of its sovereignty.

“The Ministry of Defense announced that Qatari air defenses successfully intercepted a missile attack targeting Al Udeid Air Base,” it said in a statement, adding that “the incident did not result in any deaths or injuries”.

“We express the State of Qatar’s strong condemnation of the attack on Al Udeid Air Base by the Iranian Revolutionary Guard Corps, and consider it a flagrant violation of the State of Qatar’s sovereignty and airspace, as well as of international law,” foreign ministry spokesman Majed Al-Ansari said in a statement.