US strikes Iran’s Qeshm Island in Strait of Hormuz; oil rises 0.5%
Key Facts
The United States carried out strikes on Qeshm Island in the Strait of Hormuz on Monday, Nov. 2, 2026, according to a US official cited by Reuters, in a move officials described as defensive and limited. Another official said the strikes targeted Iranians using surface-to-air missiles against US assets, while an official told The Washington Post that the operation hit Iranian missile launchers. A US official told Reuters the strikes did not represent a resumption of major combat operations. Iranian state media had earlier reported hearing several explosions on the island on Monday. US Central Command did not respond to requests for comment after the Pentagon referred the inquiry to it.
The strikes came as Washington and Tehran remain in contact over ending the war, alongside the possibility of renewed fighting. US President Donald Trump said in a phone interview with Axios on Monday that he was “in no hurry” to decide whether to resume fighting with Iran. He added that Qatari mediators had prepared a draft agreement proposing a three-day sequence of confidence-building measures aimed at resuming direct negotiations between the United States and Iran. The Associated Press reported that Qatari mediators held two rounds of talks with Iranian officials in the previous week, seeking a framework to halt Iranian attacks in the Strait of Hormuz in exchange for the United States lifting its blockade of Iranian ports. US Vice President JD Vance said the president and vice president were optimistic about reaching a negotiated settlement, adding: “We will continue working on that.”
The strike report affected oil prices in early Asian trading on Nov. 3. Brent crude futures rose 48 cents, or 0.5%, to $105.25 a barrel by 01:04 GMT, while West Texas Intermediate rose 47 cents, or 0.5%, to $96.93 a barrel, according to Reuters. A market analyst said the report “put some risk premium back into oil prices,” after markets had begun pricing in a more diplomatic path. The impact of any developments around Qeshm depends on shipping through the Strait of Hormuz, which has fallen sharply since the US-Iran conflict broke out in late February. Before the war, the strait carried about one-fifth of global crude oil and natural gas supplies, according to Reuters.
Shipping through the strait remains a focus of political and economic pressure as efforts to reach an understanding continue. The Associated Press said October saw the highest number of attacks on commercial vessels in the Strait of Hormuz since March, as Iran sought to increase pressure on the United States to lift the blockade. Reuters reported that Tehran said on Monday that contacts with Washington to end the war were continuing, after talks with Qatari mediators ended with revised proposals but no breakthrough. The strikes’ timing alongside continued contacts tests the negotiating track Trump has indicated remains in place, while the possibility of a return to fighting persists. Energy flows through the Gulf remain vulnerable to developments in shipping and security in the strait.
China is scheduled to send a special envoy to Iran, Oman and Saudi Arabia in early to mid-November, according to the Associated Press. On supply, OPEC said the seven countries participating in the voluntary adjustment decision kept required December 2026 production at September 2026 levels. The group set Nov. 29, 2026, as the date of its next meeting. The decision comes as shipping and supply risks intersect with the course of US-Iran contacts, while both crude benchmarks rose in early trading after the strike report. The November talks and the next meeting offer two upcoming milestones for tracking diplomatic developments and production decisions.