Oil rises after US strike on Qeshm
By the AFREEQUE newsroom, based on MyJoyOnline
Oil prices edged higher after reports of a US strike on Iran’s Qeshm Island, with Brent reaching $105.25 a barrel. The operation revived fears of prolonged disruptions to Middle Eastern supplies, according to Reuters, citing US officials and market analysts.
Oil prices rose in Asian trading on Tuesday after a report of a US strike on the Iranian island of Qeshm. Brent gained 48 cents, or 0.5%, to $105.25 a barrel, while US West Texas Intermediate crude rose 47 cents to $96.93 at around 01:04 GMT, according to Reuters, as reported by MyJoyOnline.
The Wall Street Journal, citing US officials, reported that the United States had struck Qeshm. Some officials described the attacks as defensive, intended to prevent Iran from targeting commercial ships in the Strait of Hormuz. Tim Waterer, chief market analyst at KCM Trade, said the announcement had reintroduced a risk premium into prices.
The rise came after Brent fell by $8.66, or 7.63%, on Monday, closing at $104.77. Contacts between Washington and Tehran continued on Monday, according to Iranian authorities, after talks with Qatari mediators failed to produce an agreement.
The conflict between the United States and Iran, which began in late February, has sharply reduced traffic in the Strait of Hormuz, through which around one-fifth of global crude oil and natural gas supplies previously passed. This follows the Brent decline recorded on 2 November and the new report on the US strike on Qeshm, published on 3 November.
