US Strike on Iran's Qeshm Island Drives Oil Prices Up

Oil prices rose Tuesday after reports that the United States struck Iran's Qeshm Island, raising concerns about escalation of the eight-month conflict and prolonged disruption of Middle East oil supplies. US West Texas Intermediate crude gained 1.50 percent to $97.90 per barrel, while Brent rose 1.7 percent to $106.54. Prices reversed Monday's drop of over seven percent, which had followed Iran-Qatar talks raising hopes for ending the US-Israeli war with Iran. The Wall Street Journal, citing US officials, reported the strike on Qeshm Island in the Strait of Hormuz, with some describing the attacks as defensive to prevent Iranian strikes on commercial ships. Iran has repeatedly warned it will respond to new attacks with strikes on US and Israeli targets in neighboring countries. The conflict, which began in February, has sharply reduced traffic through the Strait of Hormuz, which previously carried about a fifth of global oil and gas supplies.