Oil edges up after report of US strike on Iran's Qeshm Island

Business Recorder reported that oil benchmarks were slightly higher early Tuesday after the Wall Street Journal said the United States had attacked Iran’s Qeshm Island. At 0355 GMT, WTI stood at $96.66 a barrel, up 20 cents, while Brent reached $104.8, a 3-cent gain. Monday’s session had seen both contracts lose more than 7% as diplomatic contacts involving Iran and Qatar encouraged hopes of progress.

US officials cited by the newspaper characterized the action as defensive, saying it was intended to limit threats to commercial vessels in the Strait of Hormuz. Analysts said the latest report revived some concern over supply risks, although prices’ modest response indicated that much of the geopolitical concern was already reflected in the market. The conflict has curtailed passage through the strait, a route that previously handled roughly one-fifth of global oil and gas flows. Tehran said discussions with Washington were continuing, while no breakthrough followed the latest talks involving Qatari mediators.