Oil prices rebound on reports of US strikes on Iran

Oil markets reacted to reports of US attacks on Iran’s Qeshm Island, as traders weighed a renewed threat to shipping and fuel supplies in the region. Mettis Global reported that WTI futures stood at $96.64 a barrel by 09:50 am PST, down $0.48, or 0.50%, despite an early rise in Asian trading. The Wall Street Journal said US officials described the operation as defensive and intended to limit risks to commercial vessels using the Strait of Hormuz.

The latest reports reversed some market optimism around a possible US-Iran diplomatic outcome, while Tehran said discussions were continuing after talks involving Qatari mediators failed to produce a breakthrough. The conflict has disrupted Hormuz shipping, a route that previously carried about one-fifth of worldwide crude and natural gas supplies, while elevated US gasoline costs have added pressure on President Donald Trump to end the war. Brent had finished October at a six-month high amid concern about escalation.