Iran attacks US military base, but oil prices drop? Analysts say attack does not affect oil supply, Iran saves face.

Iran's retaliatory strike on the US base in Qatar was not as severe as investors feared, easing concerns in the market that the conflict would immediately disrupt Middle East supplies and causing oil prices to fall. After Iran launched missiles at the US base in Qatar, US oil plummeted as traders had previously feared Iran's retaliatory response would involve closing the Strait of Hormuz, through which about one-fifth of the world's oil passes. Although initially there were concerns that Iran would disrupt supply in retaliation against the US, these fears have since diminished. "It seems to me that this was well-planned, Iran targeted an uninhabited US base, gave plenty of warnings in advance, closed its airspace, and provided evasion guidelines," said Harry Tchilinguirian, head of research at Onyx Capital Group. "Iran made a face-saving response, staying away from the Strait of Hormuz."