Oil Prices Rise After Reported US Strike on Iran’s Qeshm Island

Oil prices moved higher in early Asian trading on Tuesday, November 3, following a report that the United States had carried out strikes on Iran’s Qeshm Island. The development renewed concerns about a possible escalation of the conflict and the impact on energy supplies from the Middle East.

According to market data, Brent crude futures increased by 48 cents, or 0.5%, to $105.25 per barrel by 0104 GMT. US West Texas Intermediate (WTI) crude also gained 47 cents, or 0.5%, reaching $96.93 per barrel.

The Wall Street Journal reported that the United States had struck Qeshm Island, citing US officials. Some officials reportedly described the strikes as defensive operations intended to prevent Iran from threatening commercial vessels travelling through the Strait of Hormuz.

The report came after a sharp decline in oil prices on Monday. Brent crude had settled at $104.77 per barrel, down $8.66, or 7.63%, from the previous session. The latest reports of military activity prompted traders to reassess the risks to regional energy supplies.

Tim Waterer, chief market analyst at KCM Trade, said the reported strikes had added a risk premium to oil prices. He noted that markets had begun anticipating a diplomatic resolution, but renewed military activity had changed the immediate outlook.

Strait of Hormuz remains central to oil market concerns

The Strait of Hormuz remains a major concern for global energy markets. Before the conflict, the strategic waterway handled approximately one-fifth of global crude oil and natural gas supplies.

The ongoing US-Iran conflict, which began in late February, has significantly reduced shipping traffic through the strait. Any prolonged disruption could affect oil exports from major Middle Eastern producers and create additional uncertainty for international energy markets.

The possibility of further escalation has also raised concerns about fuel prices, inflation and the wider economic impact on oil-importing countries.

Diplomatic efforts continue despite military tensions

Alongside the military developments, diplomatic contacts between Washington and Tehran are continuing.

Iranian officials said on Monday that discussions with the United States aimed at ending the conflict remained ongoing. Recent talks involving Qatari mediators concluded without a breakthrough, although revised proposals were discussed and a draft agreement was reportedly being circulated.

US President Donald Trump also raised doubts about whether Washington would resume military strikes against Iran. He indicated that an agreement with Tehran remained possible.

Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei had granted the government certain authorities to pursue peace negotiations.

These developments suggest that diplomatic efforts remain active even as military tensions continue to influence market sentiment.

Oil prices remain sensitive to geopolitical developments

The conflict has become an important factor in the recent movement of global oil prices. Higher fuel costs have also emerged as a domestic political concern in the United States, putting additional pressure on the Trump administration to find a way to end the conflict.

Brent crude finished October at its highest level in six months, reflecting concerns that tensions in the Middle East could intensify further.

Meanwhile, Washington is also preparing for another round of diplomatic engagement on a separate international conflict. US officials said delegations from Ukraine and Russia would meet in Abu Dhabi on November 10 and 11, with American representatives participating in discussions on ending the war, post-war security arrangements and de-escalation.

For global energy markets, the immediate outlook will depend heavily on developments between Washington and Tehran, the security of commercial shipping through the Strait of Hormuz and the progress of diplomatic negotiations.