Global crude oil prices rebounded in early trade on Tuesday after reports of US military action against Iran’s Qeshm Island heightened concerns over an escalation in Middle East tensions and potential disruptions to energy supplies.
Brent crude, the international oil benchmark, rose 61 cents, or 0.58 per cent, to $105.38 a barrel. US West Texas Intermediate (WTI) crude gained 71 cents, or 0.73 per cent, to $97.17 a barrel.
The gains followed a sharp decline in the previous session, when Brent settled $8.66, or 7.6 per cent, lower at $104.77 a barrel.
Reports citing US officials said American forces had targeted Qeshm Island in an operation described by some officials as defensive, aimed at limiting Iran’s ability to threaten commercial shipping through the Strait of Hormuz. The development prompted traders to factor geopolitical risks back into crude prices.
The reported military action came amid ongoing diplomatic efforts to end the conflict. Tehran said discussions with Washington were continuing, although recent talks mediated by Qatar ended without a breakthrough despite revised proposals from Iran.
Trump said a deal with Tehran remained possible, while casting doubt on further military strikes.
The conflict has disrupted shipping through the Strait of Hormuz, which carries around one-fifth of global oil and gas supplies, keeping fuel prices high.
Brent crude ended October at a six-month high amid fears of further regional instability.
Meanwhile, Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei had delegated powers to the government to pursue peace talks.
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