Oil climbed back after a 7% drop in the previous session as reports that the United States had attacked Iran’s Qeshm Island rekindled fears of Middle East strife and disruptions to energy flows.
The attack renewed concerns about shipping security in the Strait of Hormuz, a key transit route for oil exports.
It followed a sell-off in the previous session, triggered by easing supply concerns and expectations of lower geopolitical risk.
Brent futures rose 48 cents, or 0.5%, to $105.25 per barrel, while US West Texas Intermediate futures added 47 cents, or 0.5%, to $96.93, according to Reuters. Brent closed 7.63% lower on Monday at $104.77 per barrel.
The Wall Street Journal said US forces had launched a series of limited strikes against Qeshm Island. A US official said the operations were a defensive response to stop Iran from threatening ships in the Strait of Hormuz. Explosions were also reported on the island by Iranian television, the Associated Press said.
The report “bumped the oil price with some risk premium again,” said Tim Waterer, chief market analyst at KCM Trade, Reuters reported.
The Strait of Hormuz is a vital global energy corridor that previously handled about one-fifth of the world’s crude oil and natural gas supplies.
