Iran's retaliatory strike on a US base in Qatar was less severe than investors had feared, easing market fears that the conflict would immediately disrupt supplies from the Middle East and sending oil prices lower. US oil plunged 4 per cent after Iran launched a missile at a US base in Qatar, and traders had feared that Iran's retaliatory response would involve closing the Strait of Hormuz, through which about a fifth of the world's oil passes. While there were initial fears that Iran would disrupt supplies in retaliation against the US, those fears have subsided. "It appears to me to be orchestrated, with Iran attacking an empty US base, issuing plenty of advance warnings and closing airspace and providing evasion guidance." Harry Tchilinguirian, head of research at Onyx Capital Group, said: "Iran responded with face and stayed away from the Strait of Hormuz."