Oil Prices Rise After Reported US Strike on Iran’s Qeshm Island
COLOMBO, November 3, 2026 — Oil prices edged higher in early Asian trading on Tuesday after a report of US strikes on Iran’s Qeshm Island renewed concerns over military escalation and prolonged disruption to Middle Eastern energy supplies.
Brent crude futures gained 48 US cents, or 0.5%, to US$105.25 a barrel by 0104 GMT. US West Texas Intermediate crude rose by 47 cents, or 0.5%, to US$96.93.
The gains followed a sharp decline on Monday, when Brent fell by US$8.66, or 7.63%, to settle at US$104.77 a barrel amid expectations of progress towards a diplomatic settlement.
The Wall Street Journal, citing US officials, reported that American forces had struck Qeshm Island. Some officials described the operations as defensive measures intended to prevent Iranian attacks on commercial vessels in the Strait of Hormuz.
KCM Trade Chief Market Analyst Tim Waterer said the report had restored some geopolitical risk premium to oil prices after markets had begun anticipating a more diplomatic approach.
The reported military action came as Tehran said contacts with Washington aimed at ending the war were continuing. Several days of discussions with Qatari mediators produced revised proposals but no breakthrough.
US President Donald Trump also suggested on Monday that an agreement remained possible, raising doubts over whether he would proceed with threatened renewed strikes.
The conflict, which began in late February, has sharply reduced shipping through the Strait of Hormuz, a route that previously carried approximately one-fifth of global crude oil and natural gas supplies.
High gasoline prices linked to the war have added to political pressure on Trump ahead of Tuesday’s US midterm elections.
Brent finished October at its highest level in six months as traders anticipated the possibility of further escalation after the vote.
Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei had granted the government certain authorities to pursue peace negotiations.
Separately, the United States is scheduled to bring Ukrainian and Russian delegations together in Abu Dhabi on November 10–11 for discussions on ending the war in Ukraine, post-war security arrangements and de-escalation.
