Oil prices rise following reports of US strike on Iran's Qeshm Island
Brent crude and US WTI futures increased in Asian trade as military action raised concerns regarding global energy supplies.
Oil prices increased in early Asian trade on Tuesday following reports of a US strike on Iran's Qeshm Island, according to The Times of India. Brent crude futures rose 48 cents, or 0.5 per cent, to $105.25 a barrel, while US West Texas Intermediate (WTI) crude gained 47 cents, or 0.5 per cent, to $96.93.
The Wall Street Journal reported, citing US officials, that American forces struck the island. Some officials described the strikes as defensive measures to stop Iran from targeting commercial vessels in the Strait of Hormuz.
The Strait of Hormuz is a critical waterway that carried approximately one-fifth of the world's natural gas and crude oil before the conflict began in late February. A reduction in shipping traffic has maintained elevated supply risks.
Despite the military action, diplomatic signals remain mixed. Iran stated that contacts with Washington are continuing after talks with Qatari mediators ended without a breakthrough, though revised proposals were presented.
US President Donald Trump expressed doubt regarding the resumption of threatened military strikes and noted an agreement with Tehran remains possible. Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei granted the government powers to pursue peace talks.
In a separate development, Washington is set to host Russian and Ukrainian delegations in Abu Dhabi on November 10-11 to discuss ending the war in Ukraine and post-war security.
