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Oil prices edged up on Tuesday after a report that the United States had struck Iran\u2019s Qeshm \u200bIsland, raising concerns about an escalation of the eight-month conflict and prolonged disruptions to Middle \u200cEast oil supplies.<\/strong><\/p>\n US West Texas Intermediate crude was up 20 cents, or 0.21%, at $96.66 a barrel while Brent crude futures rose 3 cents, or 0.03%, to $104.8 a barrel by 0355 GMT.<\/p>\n Both benchmark prices dropped more than 7% on Monday as talks between Iranian and \u200bQatari officials lifted hopes for an end to the US-Israeli war with Iran.<\/p>\n The United States struck Iran\u2019s \u200bQeshm Island, the Wall Street Journal reported on Tuesday, citing US officials. Some of the officials \u2060described the assaults as defensive in nature to prevent Iran from having the freedom to attack commercial ships \u200bin the Strait of Hormuz.<\/p>\n \u201cThe report added a degree of risk premium back into the oil price. Just \u200bwhen markets were starting to price in a more diplomatic path, this reminder of ongoing military activity has flipped the tone,\u201d said Tim Waterer, chief market analyst at KCM Trade.<\/p>\n However, the inability of prices to sustain those gains suggests that a substantial \u200bgeopolitical risk premium is already embedded in oil prices, said Priyanka Sachdeva, head of market insight at Phillip \u200bNova.<\/p>\n \u201cUnless there is concrete evidence of further disruption to physical supplies or critical energy infrastructure, fresh headlines alone may struggle \u200cto sustain \u2060another rally.\u201d<\/p>\n Meanwhile, Tehran said on Monday that contacts between Iran and the US to end their war are continuing, after days of Iranian talks with Qatari mediators ended with altered proposals but no breakthrough.<\/p>\n Trump raised doubts on Monday about whether he would follow through on a threatened resumption of military strikes against Iran and said a deal \u200bwith Tehran could happen.<\/p>\n The \u200bUS-Iran conflict that began in \u2060late February has sharply reduced traffic through the Strait of Hormuz, which previously carried about a fifth of global crude oil and natural gas supplies.<\/p>\n The Iran war \u200bis a leading cause of high gasoline prices that are weighing on voters, \u200band Trump is \u2060under pressure to end the conflict.<\/p>\n Brent ended October at its highest in six months on concerns that the Middle East conflict could escalate again after Tuesday\u2019s US midterm elections.<\/p>\n Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei \u2060had granted \u200bthe government certain authorities for peace talks.<\/p>\n Additionally, the US will bring together \u200bdelegations from Ukraine and Russia in Abu Dhabi on November 10 to 11 to discuss ending Moscow\u2019s war against Ukraine, post-war security agreements \u200band de-escalation.<\/p>\n<\/div>\n