Oil prices rise following reports of a US strike on the Iranian island of Qeshm
On November 3, oil prices saw a slight increase following reports of a US strike on the Iranian island of Qeshm. This heightened concerns regarding a further escalation of the conflict and prolonged disruptions to oil supplies from the Middle East.
US West Texas Intermediate (WTI) crude rose by 20 cents, or 0.21%, to $96.66 per barrel.
Meanwhile, Brent crude futures gained 3 cents, or 0.03%, reaching $104.80 per barrel as of 03:55 GMT.
"The report has added a risk premium to oil prices. Just as markets began to price in a more diplomatic path, this reminder of ongoing military activity has shifted the tone," noted Tim Waterer, Chief Market Analyst at KCM Trade.
At the same time, the inability of oil prices to sustain these gains suggests that a significant geopolitical risk premium is already factored into the pricing.
On November 3, oil prices saw a slight increase following reports of a US strike on the Iranian island of Qeshm. This heightened concerns regarding a further escalation of the conflict and prolonged disruptions to oil supplies from the Middle East.
US West Texas Intermediate (WTI) crude rose by 20 cents, or 0.21%, to $96.66 per barrel.
Meanwhile, Brent crude futures gained 3 cents, or 0.03%, reaching $104.80 per barrel as of 03:55 GMT.
"The report has added a risk premium to oil prices. Just as markets began to price in a more diplomatic path, this reminder of ongoing military activity has shifted the tone," noted Tim Waterer, Chief Market Analyst at KCM Trade.
At the same time, the inability of oil prices to sustain these gains suggests that a significant geopolitical risk premium is already factored into the pricing.
