Oil prices rose in early Asian trading on Tuesday after the United States struck Iran’s Qeshm Island, reviving fears of an escalation of the conflict and prolonged disruptions to energy supplies from the Middle East.
According to a Reuters report, Brent crude futures gained 48 cents, or 0.5%, to $105.25 a barrel by 0104 GMT, while US West Texas Intermediate (WTI) crude rose 47 cents, or 0.5%, to $96.93 a barrel.
The United States carried out strikes on Qeshm Island on Monday, The Wall Street Journal reported, citing American officials. The attacks were described as “defensive measures intended to prevent Iran from targeting commercial shipping in the “.
The strikes were part of a series of limited US attacks on Iran in recent weeks that Washington has not publicly announced, the Journal reported. The administration has reportedly sought to keep the operations low-profile to avoid signalling a return to large-scale military action.
located near the entrance to the Strait of Hormuz, hosts an underground missile site, a naval base and a major desalination plant. The US had also targeted the island during earlier phases of the conflict as well.
had settled 7.63% lower, or $8.66, at $104.77 a barrel on Monday. The benchmark had ended October at its highest level in six months amid concerns that the Middle East conflict could escalate after the US midterm elections.
The conflict, which began in late February, has reduced traffic through the Strait of Hormuz. The waterway earlier handled about a fifth of global crude oil and natural gas supplies.
US President Donald Trump downplayed the possibility of a return to full-scale conflict with Iran. Asked on Monday whether he was considering fresh attacks after the midterm elections, Trump said “no”.
Trump also said a deal with Tehran remained possible, while Iranian Foreign Ministry spokesperson Esmail Baghaei said that the next move rested with Washington. Iranian officials have warned that the country would retaliate if the US reignited the conflict.
Meanwhile, contacts between the two countries are continuing following discussions involving Qatari mediators, according to Reuters. The talks have not yet produced a breakthrough.
