Key takeaways Brent rebounds after Monday's 7.6% price collapse US strikes on Qeshm Island revive supply fears Iran peace negotiations remain uncertain despite mediation efforts Oil prices re
Oil prices rebounded on November 3 after the United States struck Iran's Qeshm Island near the Strait of Hormuz, reviving fears of further supply disruptions less than 24 hours after crude suffered its sharpest decline in months.
Brent crude futures climbed 1.3% to $106.13 per barrel by 10:43 GMT, while West Texas Intermediate (WTI) gained 1.5% to $97.91.
The rebound followed Monday's 7.63% Brent collapse, when optimism surrounding Iranian peace negotiations triggered a dramatic reversal in the oil price rally that dominated October.
Oil Prices Rebound as US Strikes Iran's Qeshm IslandAmerican officials confirmed strikes against targets on Qeshm Island, describing the operation as defensive and intended to prevent attacks on commercial shipping.
Qeshm lies near the Strait of Hormuz, a strategically important waterway that historically handled approximately one-fifth of global oil and liquefied natural gas trade.
Military operations in the region threaten shipping security, potentially increasing transportation costs and disrupting energy exports.
The latest escalation follows repeated tanker attacks and threats against Gulf infrastructure that previously pushed Brent above $116.
However, the reported strikes do not establish that additional oil production or export capacity has been physically lost.
Instead, traders appear to be rebuilding the geopolitical risk premium that disappeared during Monday's selloff.
That distinction is important because JPMorgan previously estimated a substantial geopolitical premium when Brent traded well above its modeled fundamental value of $94.
<iframe src=”https://widgets.coincodex.com/w/a4630a5a-7199-4d79-ad01-953a7f7434ed?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>Iran Peace Talks Face New UncertaintyMonday's collapse followed diplomatic discussions involving Iranian officials and Qatari mediators, which raised expectations that the conflict might move toward a negotiated settlement.
Those hopes weakened after a senior Iranian official told Reuters that Washington and Tehran remained far from an agreement.
The official also indicated that Iran would reject what it characterized as excessive American demands.
The latest developments reverse the optimism behind the November 2 selloff.
Nevertheless, Qatar continues its mediation efforts, leaving the possibility of further negotiations open.
The market remains highly sensitive to diplomatic announcements because even limited progress could reduce expectations of prolonged supply disruptions.
Strait of Hormuz Risks Keep Oil Markets VolatileOngoing shipping restrictions have complicated global energy supplies, while OPEC+'s decision to maintain December production targets limits the prospect of additional coordinated output.
Supply concerns have also intensified following Saudi refinery threats and reports of unusually low American emergency oil reserves.
Further escalation could push Brent toward $110, while renewed diplomatic progress might return prices toward Monday's $104.77 settlement.
