Global oil prices have increased after reports of fresh US attacks on Iran. US forces reportedly carried out strikes on Iran’s Qeshm Island late Monday.
The development has raised concerns about oil supplies, especially as the US midterm elections are taking place just a day later.
Brent crude is now trading at $106.60 per barrel after rising 1.75% on Tuesday. US West Texas Intermediate (WTI) crude has also gone up by 1.7% to $98.10 per barrel, according to CNBC.
Oil Prices Recover After Falling More Than 7%
Oil prices had fallen sharply on Monday, with Brent and other crude oil prices losing more than 7%. The fall came after US President Donald Trump and Iran’s President gave signals that they were open to ending the conflict through talks.
Before this fall, Brent crude had reached its highest level since 2022. Investors were worried that the US could launch more attacks on Iran after the midterm elections.
US Strikes On Iran Raise Oil Supply Fears
US officials have confirmed to The Wall Street Journal that American forces attacked Iran’s Qeshm Island on Monday. The US has also carried out limited military operations against Iran in recent weeks.
The military action has been kept low-profile to avoid sending a message that Washington is planning a bigger attack against Iran, the newspaper reported, quoting an unnamed US official.
Trump And Vance Hope For Peace Deal With Iran
Despite the latest military action, the US government is still talking about a possible peace agreement with Iran.
US Vice President JD Vance told CNN that he and Trump are hopeful about reaching an agreement through talks.
“The president and I both feel really good about the prospect of potentially coming to a negotiated settlement,” Vance said.
US Secretary of State Marco Rubio also said on Sunday that Trump wants to end the Iran war through diplomacy. He said the US President prefers talks over military action.
Rising Oil Prices Add To US Inflation Concerns
Higher oil prices have already increased concerns about inflation and petrol prices in the United States. This is also a concern for Trump ahead of the midterm elections.
Last week, two Federal Reserve presidents said that interest rates may have to increase to control inflation. Higher interest rates make loans more expensive and can slow economic growth. However, they can also help bring inflation down, CNBC reported.