Oil prices rebounded on Tuesday after a reported US strike on Iran’s Qeshm Island and fresh indications that diplomatic efforts to end the conflict remain stalled, reviving concerns about potential disruptions to crude supplies from the Middle East.
West Texas Intermediate (WTI) crude rose 1.78% to $98.18 a barrel, while Brent crude gained 2.08% to $107.00. The recovery followed a sharp sell-off on Monday, when both benchmarks fell more than 4% amid optimism that diplomatic efforts, including Qatari-mediated discussions, could help end the conflict.
US Strike and Iran’s Response
A US official said on Monday that American forces had struck Iran’s Qeshm Island. The operation was described by some officials as defensive, with the stated objective of preventing Iran from attacking commercial vessels operating in the Strait of Hormuz.
A senior Iranian official however told Reuters on Tuesday that the US and Iran remained far from reaching an agreement, adding that Iran would not accept what it described as excessive US demands.
Oil markets are likely to remain volatile as traders assess developments on two fronts: the possibility of renewed diplomatic engagement between Washington and Tehran and the risk of further military escalation.
