Global oil prices rose over 1.6% on Tuesday following fresh US airstrikes on Iran’s Qeshm Island and statements from Tehran indicating a ceasefire deal remains far off.
Brent crude gained $1.84 (1.76%) to reach $106.61 a barrel while US West Texas Intermediate (WTI) rose $1.60 (1.66%) to $98.06. Prices had dropped 7% a day earlier amid initial optimism surrounding Qatar-mediated talks between US and Iranian officials.
However the military tension quickly escalated when US forces struck Qeshm Island. Washington described the assault as a defensive action aimed at preventing Iranian attacks on commercial shipping in the strategic Strait of Hormuz.
A senior Iranian official subsequently stated that Tehran was far from reaching a resolution and rejected Washington's "excessive demands." Iranian Parliament Speaker Mohammad Bagher Ghalibaf added that the ball was now in the US court. Analysts noted that renewed military activity immediately reintroduced a risk premium into energy markets.
The ongoing conflict continues to drive high gasoline prices, adding pressure on US President Donald Trump ahead of Tuesday's midterm elections. Meanwhile the supply disruption risks continue to floor oil prices while geopolitical uncertainty limits further upside.
In separate developments affecting global energy markets, a Ukrainian drone strike damaged a Russian oil refinery in Yaroslavl while Russia launched overnight air attacks on Ukrainian power infrastructure across Vinnytsia, Dnipropetrovsk, and Kharkiv.
Meanwhile the US plans to convene delegations from Russia and Ukraine in Abu Dhabi on November 10–11 to discuss de-escalation and post-war security frameworks.
