Oil prices edged higher on Tuesday after reports of the United States strike on Iran’s Qeshm Island, fuelling concerns of further disruptions to Middle Eastern oil supplies.
According to media reports, US West Texas Intermediate (WTI) crude futures had gained 20 cents, or 0.21%, to $96.66 per barrel, while Brent crude futures rose 3 cents, or 0.03%, to $104.80 per barrel.
Both benchmarks had fallen by more than 7% on Monday amid renewed hopes for an end to the US-Israeli war with Iran following talks between Iranian and Qatari officials.
The US attacked Iran’s Qesham Island on Tuesday. The US officials described the attacks as defensive measures intended to prevent Iran from targeting commercial vessels in the Strait of Hormuz.
The report renewed concerns about geopolitical risks in oil markets, according to Tim Waterer, chief market analyst at KCM Trade, who said the news had shifted market sentiment away from the prospect of a diplomatic resolution.
