By Evgenia Filimianova
Oil prices climbed by more than 1.5 percent early on Nov. 3 after reports of explosions on Iran’s Qeshm Island in the Strait of Hormuz.
Brent crude futures rose by $1.84, or 1.76 percent, to $106.61 a barrel by 2:44 a.m. ET, while U.S. West Texas Intermediate crude gained $1.60, or 1.66 percent, to $98.06.
Earlier on Nov. 2, Iranian state media IRNA reported several explosions on Qeshm Island, the biggest island in the Persian Gulf.
U.S. President Donald Trump on Nov. 3 confirmed U.S. strikes on an Iranian anti-aircraft facility on the night of Nov. 2.
Speaking to Fox News’s “Fox & Friends,” Trump said the U.S. military hit the facility shortly after its completion.
“They have no airplanes. They have no anti-aircraft. We took some out last night. It’s just a minor attack. It wasn’t war,” Trump said. “They built an anti-aircraft facility. It took them about two months. We watched it get built, as soon as it was completed, we hit it last night very nicely.”
Asked about the reported explosions on Qeshm Island, a U.S. official told The Epoch Times that Trump “has all options available at any time.”
“The United States is in a very strong position with control of the Strait of Hormuz and the Iranian economy collapsing. President Trump holds all the cards and will do whatever is best for the United States,” the U.S. official said.
The Epoch Times reached out to U.S. Central Command for further comment but didn’t receive a response by the time of publication.
Oil prices rebounded after a sharp sell-off on Nov. 2. A barrel of West Texas Intermediate declined by 7.24 percent to $96.58 at 12:28 p.m. ET on Nov. 2. Global Brent prices also fell by 7.49 percent to about $104.93 a barrel in overseas trading.
On Nov. 2, Trump wrote in a post on Truth Social that oil prices were “dropping like a rock” because markets believed that war with Iran could be avoided.
“Iran wants a settlement, as soon as possible. It could happen!” he wrote.
Over the weekend, Trump said that negotiations with Iran were going fine and that he was not “in much of a hurry” to reach an agreement, while maintaining that military action remained an option after the U.S. midterm elections.
Trump also said Washington still needed to address one or two remaining Iranian nuclear sites, including the suspected underground nuclear facility at Pickaxe Mountain.
Iranian officials said on Nov. 2 that indirect diplomatic contacts with the United States were continuing but described the issues under discussion as highly complicated.
Iranian Foreign Ministry spokesperson Esmail Baghaei said Iran would not reopen the Strait of Hormuz unless Washington lifted the naval blockade imposed in July.
Maritime security risks remain high in the Strait of Hormuz despite a modest recovery in shipping activity.
On Nov. 1, the UK Maritime Trade Operations (UKMTO) agency said it had received a report that a vessel had been struck by an unidentified projectile in the Strait of Hormuz after another ship relayed a mayday call.
UKMTO advised vessels to transit with caution while authorities investigated.
According to S&P Global Commodities at Sea, vessel traffic through the Strait reached its highest monthly level since July in October, supported by stronger liquefied natural gas and dry-bulk movements despite lower crude tanker volumes.
The Nov. 2 report said the operating environment had become increasingly volatile, citing reported projectile strikes, vessel fires, and other security incidents throughout October.
International Maritime Organization Secretary-General Arsenio Dominguez said there had been about 30 attacks during the month—among the highest monthly totals recorded.
While Iranian aerial attacks continued to pose risks to shipping, Dominguez warned that uncertainty over the possible presence of naval mines remained a major concern.
“I cannot guarantee that it’s safe,” he told reporters on Nov. 2. “That’s why we are not recommending anyone to go through the Strait of Hormuz.”
Despite the heightened security environment, S&P Global data showed total observed and estimated vessel transits through Hormuz edged up to 750 in October from 749 in September, although very large crude carrier movements declined to 156 from 184 during the same period.
Reuters contributed to this report.
