Oil edges up as US strike on Iran's Qeshm Island revives supply concerns

Oil prices edged higher on Tuesday after the United States struck Iran's Qeshm Island, pulling crude back from a sharp sell-off as traders weighed fresh risks to Middle Eastern supply.

West Texas Intermediate futures gained 20 cents, or 0.21%, to $96.66 a barrel, while Brent added 3 cents, or 0.03%, to $104.80, according to Token Times. The move followed a slide of more than 7% for both benchmarks on Monday, when renewed hopes of an end to the US-Israeli war with Iran took hold after talks between Iranian and Qatari officials.

US officials described the strike as a defensive measure intended to prevent Iran from targeting commercial vessels in the Strait of Hormuz. The news shifted sentiment away from the prospect of a diplomatic resolution, said Tim Waterer, chief market analyst at KCM Trade.

The reversal was modest in price terms but notable in direction: a 3-cent gain in Brent after a 7% drop shows how quickly the market's focus can swing between diplomacy and disruption. With the Strait of Hormuz back in the frame, traders are again weighing the risk that supply routes, rather than talks, set the next move.