Oil rises after reported US strikes on Iran's Qeshm Island, a day after talk of a diplomatic deal
US officials say Washington has carried out low-profile strikes on Iran for weeks, even as Vance and Rubio talk up a negotiated end to the war.
By James Mitchell ·
Why it matters: High oil prices have fed US inflation and gas prices, and two Fed presidents say rates will need to move higher to rein in inflation.
For information only, not investment advice.
Oil prices climbed Tuesday after the United States reportedly struck Iran's Qeshm Island late Monday, CNBC reported. The rise came a day after the US and Iranian presidents signaled they were open to a diplomatic end to the Iran war, and oil sold off sharply on Monday.
US officials told The Wall Street Journal that Washington attacked the island Monday and has been carrying out "limited strikes" against Iran in recent weeks, according to CNBC. An unnamed official said the campaign has been kept deliberately low-profile to avoid signaling plans for a major escalation.
The administration is still talking up a deal. Vice President JD Vance told CNN, "The president and I both feel really good about the prospect of potentially coming to a negotiated settlement." On Sunday, Secretary of State Marco Rubio said President Donald Trump would like to resolve the war "diplomatically."
Why it matters at the pump and beyond: high oil prices have contributed substantially to US inflation and gasoline prices, CNBC reported, and two Federal Reserve presidents said last week that interest rates will need to move higher to rein in inflation. The strikes also raised concerns of renewed escalation in the Middle East as Americans vote in the midterms, CNBC said.
Sources
Tags: oil · iran · geopolitics · inflation · federal-reserve