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

Summary: Global oil prices increased by 0.5% following reports of a US strike on Iran’s Qeshm Island, raising concerns over regional tensions and potential disruptions to oil shipments through the Strait of Hormuz. Brent crude reached $105.25 per barrel, while WTI rose to $96.93.

KARACHI: Global oil prices moved higher on Tuesday after reports of a US strike on Iran’s Qeshm Island raised concerns about renewed military escalation and possible disruptions to energy supplies from the Middle East.

Brent crude futures increased by 48 cents, or 0.5%, to $105.25 per barrel. Similarly, US West Texas Intermediate (WTI) crude gained 47 cents, or 0.5%, to reach $96.93 per barrel.

The latest gains followed a sharp decline in international oil prices during the previous trading session. Brent crude had fallen by $8.66, or 7.63%, to settle at $104.77 per barrel on Monday.

According to a report by The Wall Street Journal, the United States carried out strikes on Iran’s Qeshm Island, citing American officials. Some officials described the attacks as defensive measures aimed at restricting Iran’s ability to target commercial vessels passing through the Strait of Hormuz.

The reported strikes have renewed concerns among energy traders about the security of international shipping routes and the possibility of further disruptions to crude oil supplies.

The Strait of Hormuz is particularly important to global energy markets because it handles a significant share of the world’s oil and natural gas shipments. Any prolonged disruption to commercial shipping through the waterway could place additional pressure on international energy prices.

However, the market’s reaction also reflects uncertainty surrounding diplomatic efforts to reduce tensions between Washington and Tehran.

Iranian officials have indicated that diplomatic contacts with the United States are continuing through regional mediators, including Qatar. However, the discussions have yet to produce a breakthrough.

Analysts believe that developments in the conflict, the security of oil shipments and the progress of diplomatic negotiations will remain important factors influencing international crude oil prices in the coming days.