Oil prices climb after US reportedly strikes Iran’s Qeshm Island

Oil prices rose at the start of Asian trading on Tuesday after a report that the United States had launched a strike on Iran’s Qeshm Island, raising concerns over an escalation of the eight-month conflict and prolonged disruptions to Middle East oil supplies.

Brent crude futures gained 48 cents, or 0.5 percent, to reach $105.25 a barrel by 01:04 GMT, while US West Texas Intermediate crude rose 47 cents, or 0.5 percent, to $96.93 a barrel.

Brent futures settled at $104.77 a barrel on Monday, down $8.66 or 7.63 percent.

The Wall Street Journal, citing US officials, reported that the United States had struck Iran’s Qeshm Island. Some officials described the attacks as defensive, aimed at preventing Iran from targeting commercial vessels in the Strait of Hormuz.

Tim Waterer, chief market analyst at KCM Trade, said: “This report has added a risk premium to oil prices. Just as markets were starting to price in a more diplomatic path, this reminder of ongoing military activity has shifted the tone.”

Meanwhile, Tehran said on Monday that communications between Iran and the United States to end the war were ongoing, after several days of talks with Qatari mediators concluded with revised proposals but no breakthrough.

On Monday, Trump cast doubt on whether he would follow through on threats to resume military strikes against Iran, saying a deal with Tehran was possible.

The conflict between the United States and Iran, which began in late February, has sharply reduced traffic through the Strait of Hormuz, a vital route that previously carried about one-fifth of the world’s crude oil and natural gas supplies.

The war in Iran is one of the main reasons for the surge in gasoline prices burdening US voters, and Trump faces pressure to end the conflict.

Brent crude ended October at a six-month high amid concerns that Middle East tensions could flare again after Tuesday’s US midterm elections.

Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei had granted the government certain powers to conduct talks aimed at ending the war.

Additionally, the United States will bring together delegations from Ukraine and Russia in Abu Dhabi on November 10 and 11 to discuss ending Moscow’s war against Kyiv, postwar security agreements, and de-escalation.