Oil Prices Today, November 3, 2026: Brent Flatlines Near $105 as US Strike on Iran's Qeshm Island Revives Supply Concerns

Mumbai, November 3: Oil prices traded marginally higher on Tuesday, November 3, recovering some ground after plunging more than 7% in the previous session, as reports of a US military strike on Iran’s Qeshm Island revived concerns over an escalation in the Middle East conflict and prolonged disruptions to global crude supplies. However, continued diplomatic efforts between Washington and Tehran limited gains, leaving traders weighing the possibility of a peace agreement against the risk of further military action. 

Brent crude futures rose 0.03% to $104.80 per barrel, while US West Texas Intermediate (WTI) crude gained 0.18% to $96.63 per barrel. The marginal gains followed a steep correction on Monday, when Brent crude futures settled $8.66, or 7.63%, lower at $104.77 per barrel. WTI crude declined $7.66, or 7.36%, to settle at $96.46 per barrel. 

US Strike on Iran’s Qeshm Island Revives Geopolitical Concerns 

Oil prices found some support after the Wall Street Journal reported, citing US officials, that American forces had struck Iran’s Qeshm Island. Some officials described the attacks as defensive operations intended to prevent Iran from targeting commercial vessels navigating the Strait of Hormuz. 

The reported military action revived concerns about a possible escalation in the eight-month-long conflict, which has significantly disrupted energy shipments through one of the world’s most important oil transit routes. 

The Strait of Hormuz is a critical chokepoint for global energy supplies, with approximately one-fifth of the world’s crude oil and natural gas shipments passing through the waterway before the conflict began in late February. The sharp reduction in shipping traffic since then has raised concerns about supply availability and the potential for sustained increases in energy prices. 

Any further escalation involving Iran and the US could prolong disruptions to tanker movements, tighten global crude supplies and push benchmark prices higher. 

Also Read: How To Invest In Crude Oil

US-Iran Peace Talks Keep Oil Market Gains in Check 

Despite renewed military tensions, diplomatic efforts to end the conflict continued to offer some relief to oil markets. Tehran said on Monday that contacts with Washington were ongoing after several days of discussions between Iranian and Qatari officials aimed at finding a resolution to the conflict. 

The discussions reportedly resulted in revised proposals, although the two sides failed to reach a breakthrough. 

US President Donald Trump also expressed uncertainty over whether he would follow through on threatened military strikes against Iran, while indicating that an agreement with Tehran remained possible. 

Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei had granted the government certain powers to pursue peace negotiations, signalling that Tehran remained open to a diplomatic solution. 

The competing developments have left crude markets particularly sensitive to headlines from the region. While the possibility of negotiations has eased some concerns over prolonged supply disruptions, the latest military developments suggest that the risk of renewed hostilities remains significant. 

Crude Oil Prices Remain Elevated Despite Monday’s Correction 

Although Brent crude declined sharply on Monday, prices remain elevated after a strong rally through October. Brent ended the month at its highest level in six months, reflecting growing concerns over an escalation in the Middle East conflict and the possibility of further disruptions to energy shipments. 

The prospect of renewed US military action following Tuesday’s US midterm elections has also remained a concern for traders. The conflict has contributed to higher fuel prices in the US, increasing domestic economic and political pressure on the Trump administration to find a resolution. 

The US is also scheduled to bring together Russian and Ukrainian delegations in Abu Dhabi on November 10-11 for discussions on ending the war in Ukraine, post-war security arrangements and de-escalation. 

What Higher Crude Oil Prices Mean for India 

For India, which relies heavily on imported crude oil to meet its domestic energy requirements, movements in international oil benchmarks remain an important macroeconomic indicator. 

Sustained increases in crude prices can widen the country’s import bill, put pressure on the rupee, raise inflationary risks and increase operating costs for oil-dependent sectors such as aviation, paints, chemicals, logistics and manufacturing. 

Higher input costs can also weigh on the profitability of oil marketing companies, particularly if retail petrol and diesel prices are not adjusted in line with international crude movements. 

Conversely, a sustained decline in crude prices following a diplomatic breakthrough between the US and Iran could provide relief to India’s external balances, inflation outlook and corporate margins. 

With Brent crude hovering around $105 per barrel despite Monday’s sharp correction, investors will continue to track developments in the Middle East, the status of negotiations between Washington and Tehran, and shipping activity through the Strait of Hormuz for further cues on global oil prices. 

Source

•  oilprice.com