Oil Rebounds After Reported US Strike on Iran

Oil prices rebounded about 0.5 percent in early Asian trading Tuesday after the Wall Street Journal reported, citing U.S. officials, that U.S. forces struck Iran's Qeshm Island on Monday. Brent crude rose 48 cents, or 0.5 percent, to $105.25 a barrel by 0104 GMT, and West Texas Intermediate rose 47 cents, or 0.5 percent, to $96.93. Brent had settled 7.63 percent lower at $104.77 on Monday. Officials described the attacks as defensive measures intended to prevent Iran from targeting commercial shipping in the Strait of Hormuz, which previously carried about one-fifth of global crude oil and natural gas supplies. Qeshm Island sits near the strait entrance and hosts an underground missile site, a naval base and a major desalination plant. The conflict began in late February. Contested: Markets are balancing further military risk against diplomacy. Tim Waterer, chief market analyst at KCM Trade, said the report added a degree of risk premium back into the oil price and that just when markets were starting to price in a more diplomatic path, this reminder of ongoing military activity flipped the tone. Asked Monday whether he was considering fresh attacks after the midterm elections, Donald Trump said no. Masoud Pezeshkian said Khamenei granted the government certain authorities to pursue peace talks. Brent closed October at a six-month high. Separately, the U.S. will host Russia-Ukraine delegations in Abu Dhabi on Nov. 10-11 for talks on ending the Ukraine war.