Oil Rises After Reports of Limited US Strike on Iran's Qeshm Island

In brief

• US forces reportedly struck Iran's Qeshm Island late Monday, which American officials described as limited and defensive.
• The strike came as Trump signalled progress in talks with Tehran to end a conflict that began in February.
• Oil prices rose on the reports after earlier falling on hopes of a breakthrough.

Strikes reported as defensive

US forces reportedly hit Qeshm Island late on Monday, according to American officials. Those officials framed the operation as a response to Iranian attempts to target commercial shipping and US military assets in the strait (US strikes Iran’s Qeshm Island on eve of election – Financial Times) (U.S. military carries out limited strikes on Iran’s Qeshm Island, U.S. officials say – NBCNews.com). They added that the action did not mark a renewed campaign of large-scale combat.

Iranian reports of explosions

Iran's state news agency IRNA said several blasts followed one another on the island, and some residents reported two aircraft overhead (US strikes Iran's Qeshm Island as Trump signals progress in talks – France 24). Iranian state media also broadcast the sound of explosions there (US reportedly strikes Iran’s Qeshm Island as Vance voices optimism about a deal – The Guardian).

Diplomacy and the wider war

The reported strike landed as Donald Trump signalled headway in talks with Tehran aimed at ending a conflict that started in February, when the United States and Israel launched attacks on Iran. Earlier, Vice President JD Vance said diplomatic efforts were heading in a positive direction. American officials also said Iran's Revolutionary Guard had repeatedly fired on US aircraft over the strait in recent weeks.

Political backdrop

Trump's Republican Party heads into the midterm vote with weakening polls, and voters are expected to penalise it over the war's impact on living costs.

Markets

Oil prices climbed on news of the strike, after falling earlier on hopes of a breakthrough that would end the war (Oil rises after report of US strike on Iran’s Qeshm Island – Investing.com).