Iraq, OPEC+, Japan, Trump, Iran, Oil

Oil prices edged up on Tuesday, November 3, 2026, after a report that the United States had struck Iran’s Qeshm Island.

The development raised concerns about an escalation of the eight-month conflict and prolonged disruptions to Middle ‌East oil supplies.

US West Texas Intermediate crude was up 20 cents, or 0.21%, at $96.66 a barrel, while Brent crude futures rose 3 cents, or 0.03%, to $104.8 a barrel by 0355 GMT.

Both benchmark prices dropped more than 7% on Monday as talks between Iranian and Qatari officials lifted hopes for an end to the US-Israeli war with Iran.

The Wall Street Journal reported on Tuesday that the States struck Iran’s Qeshm Island, adding that some US officials ⁠described the assaults as defensive in nature to prevent Iran from having the freedom to attack commercial ships in the Strait of Hormuz.

“The report added a degree of risk premium back into the oil price. Just when markets were starting to price in a more diplomatic path, this reminder of ongoing military activity has flipped the tone,” the chief market analyst at KCM Trade, Tim Waterer, told Reuters.

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Meanwhile, Tehran said on Monday that contacts between Iran and the US to end their war are continuing, after days of Iranian talks with Qatari mediators ended with altered proposals but no breakthrough.

Trump raised doubts on Monday about whether he would follow through on a threatened resumption of military strikes against Iran and said a deal with Tehran could happen.

The US-Iran conflict that began in ⁠late February has sharply reduced traffic through the Strait of Hormuz, which previously carried about a fifth of global crude oil and natural gas supplies.

The Iran war is a leading cause of high gasoline prices that are weighing on voters, and Trump is ⁠under pressure to end the conflict.

Segun Ojo
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