US strikes Iran’s Qeshm island, oil prices rise as fears of renewed conflict and disruption grow | Today’s news
Oil prices rose in early Asian trading on Tuesday after the United States struck Iran’s Qeshm island, reviving fears of an escalating conflict and prolonged disruption of energy supplies from the Middle East.
Brent crude futures were up 48 cents, or 0.5%, at $105.25 a barrel by 01:04 GMT, while U.S. West Texas Intermediate (WTI) crude was up 47 cents, or 0.5%, at $96.93 a barrel, according to a Reuters report.
The United States carried out strikes on Qeshm Island on Monday, The Wall Street Journal reported, citing US officials. The strikes were described as “defensive measures aimed at preventing Iran from targeting commercial shipping in the Strait of Hormuz”.
The strikes were part of a series of limited U.S. attacks on Iran in recent weeks that have not been publicly announced by Washington, the newspaper said. The administration reportedly sought to keep the operations low-profile so as not to signal a return to large-scale military action.
Qeshm Island, located near the entrance to the Strait of Hormuz, hosts an underground missile base, a naval base and a major desalination facility. The US also targeted the island during earlier stages of the conflict.
Oil prices regain risk premium after US strikes
Brent crude settled 7.63% lower, or $8.66, at $104.77 a barrel on Monday. The benchmark closed at a six-month high in October amid concerns that the Middle East conflict could escalate after the US midterm elections.
The conflict, which began in late February, has limited traffic through the Strait of Hormuz. The waterway used to provide about a fifth of the world’s oil and natural gas supplies.
Donald Trump plays down the prospect of renewed war
US President Donald Trump played down the possibility of a return to full-scale conflict with Iran. Asked Monday if he was considering new attacks after the midterm elections, Trump said “no.”
Trump also said a deal with Tehran was still possible, while Iranian Foreign Ministry spokesman Esmail Baghaei said the next step depended on Washington. Iranian officials have warned that the country will retaliate if the US re-ignites the conflict.
Meanwhile, contacts between the two countries are continuing after discussions involving Qatari mediators, Reuters reported. The talks have so far yielded no breakthrough.
