Oil Rises After US Strike on Iran's Qeshm Island

Oil prices rose in early Asian trade on Tuesday after a report that the United States struck Iran's Qeshm Island, raising concerns about escalation of the eight-month conflict and disruptions to Middle East oil supplies. Brent crude futures gained 48 cents, or 0.5%, to $105.25 a barrel, while US West Texas Intermediate crude rose 47 cents to $96.93. The Wall Street Journal reported the strike, citing US officials who described it as defensive to prevent Iran from attacking commercial ships in the Strait of Hormuz. The news reversed market sentiment that had favored diplomacy, adding a risk premium back into prices, according to KCM Trade analyst Tim Waterer. The US-Iran conflict, which began in late February, has sharply reduced traffic through the Strait of Hormuz, a key route for global crude and gas supplies. Tehran said contacts with Washington to end the war continue, while President Trump raised doubts about resuming military strikes and signaled a deal was possible.