Oil prices climbed in early Asian trading on November 3 following reports of a US strike on Iran’s Qeshm Island. The move heightened concerns over escalating tensions in the eight-month conflict and potential disruptions to Middle East oil supplies.
Brent crude futures rose 48 US cents, or 0.5%, to US$105.25 a barrel by 1.04am GMT, while US West Texas Intermediate crude gained 47 US cents, or 0.5%, to US$96.93 a barrel. The previous day, Brent crude had settled 7.63% lower at US$104.77 a barrel.
The Wall Street Journal reported that the US had struck Qeshm Island, citing US officials who described the attacks as defensive measures to prevent Iran from targeting commercial ships in the Strait of Hormuz. Tim Waterer, chief market analyst at KCM Trade, noted that the report reintroduced a risk premium into oil prices, shifting market sentiment from diplomatic optimism back to military uncertainty.
Meanwhile, Iran stated that talks with the US to end the conflict were ongoing, though no breakthrough had been reached. US President Trump also cast doubt on whether he would resume military strikes against Iran, suggesting a potential deal could still be reached. The conflict, which began in late February, has significantly reduced traffic through the Strait of Hormuz, a critical route for global crude oil and natural gas supplies.