Oil prices rose on Tuesday after the U.S. reportedly struck Iran's Qeshm Island late Monday, one day before the midterm elections, according to CNBC.
Brent crude was up 1.75% at $106.60 per barrel, and West Texas Intermediate was up 1.7% at $98.10, the report said. Oil prices had fallen more than 7% on Monday, a day after the U.S. and Iranian presidents signaled openness to a diplomatic solution to the Iran war.
U.S. officials told The Wall Street Journal that Washington attacked Qeshm Island on Monday, the report said. The officials also said the U.S. has carried out "limited strikes" against Iran in recent weeks. An unnamed official told the Journal the campaign has been kept deliberately low-profile to avoid signaling plans for a major escalation.
Vice President JD Vance told CNN, "The president and I both feel really good about the prospect of potentially coming to a negotiated settlement." Secretary of State Marco Rubio said on Sunday that President Donald Trump would like to resolve the war diplomatically and prefers not to use military force.
Before these developments, Brent prices were at their highest since 2022, the report said, as fears of further U.S. strikes after the midterms grew.
The report also said high oil prices have contributed substantially to inflation and high U.S. gasoline prices, which concern Trump ahead of the midterms. Last week, two Federal Reserve presidents said interest rates will need to move higher to rein in inflation.