Oil prices rose in early Asian trading Tuesday after U.S. strike reports partially reversed Monday’s drop, which Reuters linked to diplomacy, as Strait of Hormuz traffic remained sharply reduced.
Brent ended Monday at $104.77 a barrel, having shed $8.66, or 7.63%. In Reuters’ 8:04 p.m. ET Monday snapshot (01:04 GMT Tuesday), Brent was 48 cents higher at $105.25 and U.S. West Texas Intermediate crude was up 47 cents at $96.93; both had gained 0.5%.
Reuters linked Monday’s decline to hopes raised by talks involving Iranian and Qatari officials. It tied Tuesday’s rise to a Wall Street Journal report that the United States had struck Qeshm Island.
Iranian state media reported explosions on Qeshm and Hengam islands and near Bandar Abbas. The Associated Press said an unnamed U.S. official confirmed strikes on Iranian targets in the Strait of Hormuz. The official said those targeted were using surface-to-air missiles against U.S. forces. AP reported that the operation had not been publicly announced by the United States.
In peacetime, roughly one-fifth of global oil supply moved through Hormuz, AP reported. Reuters said traffic through the waterway has fallen sharply since the conflict began in late February. AP reported that Monday’s oil decline helped most S&P 500 stocks, while high gasoline prices could be a liability for Republicans in the midterms.
Vice President JD Vance said Monday that he and President Donald Trump felt “pretty good” about the prospect of a negotiated settlement, AP reported. Iran’s parliament speaker and chief negotiator Mohammad Bagher Qalibaf said Tehran had delivered a “firm and rational response” to Washington but did not explain what he meant. AP also reported that Qalibaf said Iran remained ready for battle.
China’s Foreign Ministry said special envoy Zhai Jun planned to visit Iran, Oman and Saudi Arabia in early and mid-November. The ministry said the visits aimed to promote peace talks and ease tensions. It gave no specific dates.
