Crude oil prices rise to $105 after US strike on Iran's Qeshm Island
Brent crude futures gained on Tuesday following reports of US military action in Iran, raising fears of Middle East supply disruptions.
Crude oil prices increased on Tuesday after reports emerged that the United States carried out a strike on Iran's Qeshm Island, according to The Economic Times. The move has raised fears regarding the intensification of the eight-month conflict and potential interruptions to Middle East oil supplies.
Brent crude futures rose 11 cents, or 0.12%, to $105 a barrel, while US West Texas Intermediate (WTI) crude increased 26 cents, or 0.27%, to $97 a barrel. This follows a previous session where Brent crude fell by $8.66, or 7.63%, to $104.77 a barrel.
The Wall Street Journal reported, citing US officials, that the strike on Qeshm Island was a defensive operation intended to stop Iran from targeting commercial vessels in the Strait of Hormuz. Tim Waterer, chief market analyst at KCM Trade, said the news of military activity shifted market sentiment and brought a fresh risk premium to prices.
Tehran stated on Monday that discussions to end the conflict with the US are continuing. Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei had given the government powers to pursue peace talks. US President Donald Trump also indicated a deal with Tehran remains possible while questioning if he would resume military strikes.
Goldman Sachs has increased its December Brent crude forecast to $105 a barrel from $90. The bank warned that Brent could reach $140 a barrel in 2027 if Gulf oil production stays 3.5 million barrels per day below its 2025 average.
The United States is scheduled to host delegations from Ukraine and Russia in Abu Dhabi on November 10-11 to discuss ending the war and security arrangements.
