Brent Rises to $105.25 After Reported US Strike on Iran's Qeshm Island
Updated
Updated · Reuters · Nov 3
Brent Rises to $105.25 After Reported US Strike on Iran's Qeshm Island
3 articles · Updated · Reuters · Nov 3
Summary
Brent crude climbed 48 cents to $105.25 a barrel in early Asian trade, while WTI gained 47 cents to $96.93 after the Wall Street Journal reported a US strike on Iran's Qeshm Island.
US officials cited by the Journal described the assaults as defensive moves aimed at stopping Iran from attacking commercial ships in the Strait of Hormuz, reviving a risk premium that traders had started to unwind.
The rebound followed Monday's sharp selloff, when Brent settled down $8.66, or 7.63%, as markets briefly leaned toward a diplomatic path.
Tehran said contacts with Washington are still continuing through Qatari mediation, even after recent talks produced revised proposals but no breakthrough.
The eight-month conflict has already cut traffic through the Strait of Hormuz, a route that previously carried about one-fifth of global crude and natural gas supplies.
Despite resilient crude flows, why do oil prices still spike on Hormuz headlines, and are traders overpricing the actual disruption risk?
As Gulf nations rush to build bypass pipelines, will the Strait of Hormuz soon lose its status as the most critical energy chokepoint?
With war-risk insurance surging and refined product exports crippled, who will ultimately absorb the massive hidden costs of this maritime conflict?
Persian Gulf War 2026: Qeshm Island Strikes, Strait of Hormuz Blockade, and the Global Oil Shock
Overview
In late 2026, the US enforced a naval blockade on Iranian oil exports, prompting Iran to escalate attacks on commercial shipping in the Strait of Hormuz. After the IRGC fired missiles at a US aircraft, the US responded with targeted airstrikes on Qeshm Island. This military tension triggered diplomatic moves: Iran offered to reopen the strait if the blockade was lifted, while US and Qatari officials advanced negotiations. Meanwhile, global oil prices soared, benefiting energy companies, and shipping risks increased sharply. As the US midterm elections approached, President Trump balanced military restraint with political messaging, while Israel pushed for further strikes, highlighting the fragile path between escalation and diplomacy.