Limited U.S. strikes near Hormuz as corridor carries 20 million barrels a day
Key Facts
The United States carried out strikes on Iranian targets in the Strait of Hormuz in an operation the Associated Press described as limited, while Iranian state media said explosions were heard on Qeshm Island. A U.S. official said those targeted were "Iranians using anti-aircraft missiles against U.S. assets." The report did not specify the location of the targets inside the strait, nor did it confirm that Bandar Lengeh was a target of the strikes. The operation comes amid tensions over maritime traffic and the course of negotiations between Washington and Tehran. The agency described the strikes as falling short of a full return to hostilities.
The developments matter to markets because of the strait’s role in global energy trade: an average of 20 million barrels a day of crude oil and petroleum products passed through it in 2025, according to the International Energy Agency. That represented about 25% of the world’s seaborne oil trade in the same year. Most of the oil passing through the strait was bound for Asia, the agency said. The scale of the flows makes the corridor sensitive to any security escalation, although the latest strikes have not been shown to disrupt oil traffic. Attacks on commercial vessels in the strait reached their highest level since March in October, according to the Associated Press, amid Iran’s efforts to pressure the United States to lift its blockade.
The strikes followed President Donald Trump’s earlier statement that the United States would not launch new strikes on Iran before Tuesday’s midterm elections, according to the Associated Press. The agency also reported that Israeli Prime Minister Benjamin Netanyahu pressed Trump during a weekend call to consider a new wave of strikes, but the president did not commit to military action. The agency quoted an official as saying Netanyahu was working with senior U.S. administration officials to persuade Trump to launch a rapid, broad air campaign, while the president had not made a decision. U.S. allies in the region warned that further strikes could destabilize the area. Those countries said escalation could prompt Yemen’s Houthis to intensify attacks on Saudi Arabia and shipping in the Red Sea.
Oil prices fell sharply in Monday’s session amid what appeared to be progress in renewed diplomatic efforts, according to the Associated Press. Settlement data reported by Reuters showed Brent crude fell 7.63% to $104.77 a barrel on November 2. West Texas Intermediate fell 7.36% to $96.46. The decline came in the session before the strikes, and therefore does not represent a market reaction to them. The Associated Press linked the price drop to signs of diplomatic progress, while security in the maritime corridor remained a factor in energy-risk calculations.
On the diplomatic track, U.S. Vice President JD Vance said Monday that he and the president felt positive about the prospects for reaching a negotiated settlement, adding, "We will continue working on that." The Associated Press reported that Qatari mediators held two rounds of talks with Iranian officials in the previous week and were seeking to advance a framework for negotiations. Further talks were scheduled for this week. Separately, the agency said China planned to send a special envoy to Iran, Oman and Saudi Arabia in early to mid-November to reduce tensions and promote regional stability. The contacts point to continued diplomatic efforts alongside the military escalation.
Against the backdrop of tensions, the seven countries participating in OPEC+ held a virtual meeting on November 1 and decided to maintain the required production levels for September for implementation in December, according to the organization’s statement. OPEC said the countries would continue reviewing market conditions monthly and set November 29 for their next meeting. These decisions provide context for oil supplies as attention turns to security in the Strait of Hormuz, through which a large share of seaborne oil trade passes. At the same time, talks between Washington and Tehran and the prospects for escalation remain among the factors shaping regional risk assessments. The report did not specify a new date for U.S. military action, while mediating parties continued to push for negotiations.