Edition · Tue 03 Nov 2026
Commodities Desk
Oil Climbs Back Above $106 as Strikes on Qeshm Dim Hopes of Peace
Brent crude climbed to $106.61 and WTI rose to $98.06 on Tuesday after American strikes on Iran's Qeshm Island and stalled diplomacy halted Monday's drop of more than 7%.
Not investment advice: this article is for information only.
By Rachel · Edited by Chanan Zevin - Chief Editor and Head of Desks
Published
Crude benchmarks climb after Strait of Hormuz strikes
Oil prices rose more than $1 on Tuesday, Nov 3, as an American strike on Iran's Qeshm Island and statements from an Iranian official signalling that a peace deal was far off dampened expectations of an imminent ceasefire.
Crude benchmarks climb after Strait of Hormuz strikes
Brent crude futures rose $1.84, or 1.76%, to $106.61 a barrel by 0744 GMT, while US West Texas Intermediate crude climbed $1.6, or 1.66%, to reach $98.06 a barrel. The price increases partially reversed a sharp decline on Monday, when both benchmarks dropped more than 7% following discussions between Iranian and Qatari officials that had briefly raised hopes for an end to the US-Israeli war with Iran.
Crude benchmarks climb after Strait of Hormuz strikes
Why it matters: For consumers and businesses, the immediate bounce in crude benchmarks shows how regional military conflicts rapidly influence fuel costs and broader inflation pressures. Sudden fluctuations in energy markets directly affect transport budgets and keep consumer prices elevated during periods of geopolitical strain.
Diplomatic impasse follows defensive strike on Qeshm Island
A US official said on Monday that American forces had struck Iran's Qeshm Island, describing the military action as defensive and intended to prevent Iran from targeting commercial vessels in the Strait of Hormuz.
Diplomatic impasse follows defensive strike on Qeshm Island
Diplomatic sentiment deteriorated further on Tuesday when a senior Iranian official said that the two nations were far from reaching an agreement to end the war, asserting that Tehran would refuse to accept excessive demands from Washington. Separately, Iranian parliament speaker Mohammad Bagher Qalibaf stated that Tehran had delivered a strong and rational response to Washington, adding that the ball was in the American court, according to Iranian state media.
Diplomatic impasse follows defensive strike on Qeshm Island
Tim Waterer, chief market analyst at KCM Trade, said that the report added a degree of risk premium back into the price of oil. Waterer noted that just as financial markets were starting to price in a more diplomatic path, this reminder of ongoing military activity had flipped the tone across commodity desks.
Midterm election pressures intersect with supply constraints
The conflict, which began in late February, has evolved into a primary driver of elevated gasoline prices weighing heavily on voters, leaving Donald Trump under pressure to resolve hostilities as mid-term elections take place on Tuesday.
Midterm election pressures intersect with supply constraints
Worries over post-election conflict escalation had already driven trading activity in previous sessions, as Brent crude ended October at its highest point in six months.
Midterm election pressures intersect with supply constraints
Priyanka Sachdeva, head of market insight at Phillip Nova, said that the persistent threat of supply disruptions continues to provide a price floor. Sachdeva added that uncertainty surrounding Washington's next steps, ongoing political developments and the reluctance of traders to maintain aggressive positions were simultaneously capping the market's upside.
Drone strike damages Yaroslavl plant as peace talks loom
Cross-border strikes on energy facilities continued in Eastern Europe on Tuesday, where a Ukrainian drone attack caused damage to an oil refinery in the Russian city of Yaroslavl, according to regional governor Mikhail Evrayev.
Drone strike damages Yaroslavl plant as peace talks loom
Russia conducted a massive overnight assault aimed at Ukrainian energy facilities situated in the Vinnytsia, Dnipropetrovsk and Kharkiv regions, the Interfax news agency reported, citing the Russian defence ministry.
Drone strike damages Yaroslavl plant as peace talks loom
In an effort to address the conflict diplomatically, the United States will convene delegations from Ukraine and Russia in Abu Dhabi on November 10 and 11 to hold talks regarding ending the war, post-war security pacts and de-escalation efforts.