Oil rises on news of US bombing of Iran's Qeshm Island - Sarmad
Global oil prices rose following reports of a US attack on Iran's Qeshm Island, raising fears of disruptions to Middle East supplies.
Translated by Qiyas from سرمد — Original source
Oil prices rose at the start of Asian trading on Tuesday following a report that the United States launched an attack on Iran’s Qeshm Island, sparking fears of an escalation in the eight-month-old conflict and prolonged disruptions to oil supplies from the Middle East.
Brent crude futures rose 48 cents, or 0.5 percent, to $105.25 per barrel by 0104 GMT, while U.S. West Texas Intermediate crude rose 47 cents, or 0.5 percent, to $96.93 per barrel.
Brent crude futures settled at $104.77 per barrel on Monday, down $8.66, or 7.63 percent.
The Wall Street Journal, citing U.S. officials, reported that the United States had bombed Iran’s Qeshm Island. Some officials described the attacks as defensive, aimed at preventing Iran from attacking commercial ships in the Strait of Hormuz.
Tim Waterer, chief market analyst at KCM Trade, said, “This report added a degree of risk premium to oil prices. While markets had begun 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, following days of talks between Iranian officials and Qatari mediators that concluded with revised proposals but no progress.
Trump raised doubts on Monday about whether he would carry out his threat to resume military strikes against Iran, stating that reaching an agreement with Tehran was possible.
The conflict between the United States and Iran, which began in late February, has led to a sharp decline in traffic through the Strait of Hormuz, which previously handled about one-fifth of global crude oil and natural gas supplies.
Iran’s war is one of the main reasons for rising gasoline prices burdening American voters, and Trump is facing pressure to end the conflict.
Brent crude closed October at its highest level in six months amid fears that the Middle East conflict could escalate again following the U.S. midterm elections on Tuesday.
Iranian President Masoud Pezeshkian said Supreme Leader Mojtaba Khamenei has granted the government certain authorities to conduct talks to end the war.
In addition, 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, post-war security agreements, and de-escalation.
