Oil prices rise after reported US strike on Iran’s Qeshm Island

Global oil prices climbed during early trading on Tuesday after reports of a US military strike on Iran’s Qeshm Island renewed concerns about escalating tensions in the Middle East and potential disruptions to international oil supplies.

According to market data reported, both major crude oil benchmarks recorded gains following the reported attack, reversing some of the losses seen during the previous trading session.

At 6:04am Pakistan Standard Time, Brent crude futures increased by 48 cents, or 0.5 per cent, to reach $105.25 per barrel.

Meanwhile, US West Texas Intermediate (WTI) crude futures also gained 47 cents, representing a 0.5 per cent increase, to trade at $96.93 per barrel.

The latest increase came after a significant decline in oil prices on Monday. Brent crude had fallen by $8.66, or 7.63 per cent, to close at $104.77 per barrel, reflecting a sharp downward movement in the international energy market.

However, reports of the US attack on Qeshm Island have brought geopolitical risks back into focus, particularly concerns about the security of energy shipments through the strategically important Strait of Hormuz.

The waterway, located between Iran and Oman, is one of the world’s most critical routes for transporting crude oil and petroleum products. Any military escalation in its vicinity could threaten shipping operations, increase transportation costs and create uncertainty among international energy traders.

Market participants are closely monitoring developments between Washington and Tehran, as further military confrontation could place additional upward pressure on oil prices.

The reported attack has also raised questions about the prospects for diplomatic engagement between the two countries, particularly as US President Donald Trump has recently indicated that a possible agreement with Iran remains an option.

Although Tuesday’s gains were relatively modest, the latest movement highlights how quickly geopolitical developments can influence global energy markets.

Investors will now be watching for further developments in the Gulf, with the security of the Strait of Hormuz remaining a key factor in determining the direction of international crude oil prices.