Oil prices drop 7% after US strike on Qeshm Island
The attack on the largest island in the Strait of Hormuz coincided with President Trump's comments on potential peace talks.
By Connor Murphy ·
Global oil markets reacted sharply on Monday following reports of a US military strike on Qeshm Island in Iran. Prices fell by more than 7 percent as investors responded to President Donald Trump's suggestion that a diplomatic resolution with Tehran is within reach.
The Wall Street Journal reported that the United States attacked the island on Monday. The publication cited unnamed US officials who described the operation as the most recent in a series of limited, secret strikes conducted by Washington over the past several weeks.
Qeshm is the largest island in the Strait of Hormuz, a critical waterway for global oil shipments. The conflict, which began in late February, has largely blocked the corridor. Some US officials characterized the recent assaults as defensive measures intended to stop Iran from attacking commercial vessels in the area.
Iranian state news agency IRNA reported hearing five explosions in rapid succession on the island. Residents said they saw two aircraft flying overhead. The Pentagon directed inquiries about the strikes to US Central Command, which did not immediately respond to requests for comment late Monday.
US officials have not publicly announced these attacks to avoid signaling an intent to resume major combat operations. President Trump spoke on Monday, the day before US midterm elections, stating that a deal with Tehran "could happen" amid "intensive" talks.
The reported strike occurred against a backdrop of ongoing negotiations aimed at ending the eight-month-old conflict. The movement in oil prices reflected market optimism over the possibility of a ceasefire.
