This photo shows fuel tanks at the fuel depot near LaGuardia Airport in the Queens borough of New York on October 5, 2026.
Charly Triballeau | AFP | Getty Images
Oil prices soared on Tuesday after the United States reportedly struck the Iranian island of Qeshm on Monday evening, a day before the midterm elections.
Brent crude was up 1.75% on Tuesday at $106.60 a barrel, while West Texas Intermediate was up 1.7% at $98.10.
Oil prices rebounded a day after the US and Iranian presidents said they were open to a diplomatic solution to the war in Iran, which saw oil prices fall more than 7% on Monday.
But before this development, Brent prices were at their highest level since 2022, as fears of new US strikes against Iran after the midterms grew.
Washington attacked the Iranian island of Qeshm on Monday, US officials told the Wall Street Journal, adding that the United States had carried out “limited strikes” against the country in recent weeks.
The military campaign against Iran was deliberately kept low-key to avoid hinting at plans for a major escalation of fighting, the report said, citing an unnamed official.
But despite these strikes, the Trump administration has also touted a possible diplomatic solution to the conflict, with Vice President JD Vance telling CNN: “The president and I are both very pleased with the prospect of eventually reaching a negotiated settlement.” »
On Sunday, US Secretary of State Marco Rubio said President Donald Trump wanted to resolve the Iranian war “diplomatically” and preferred not to use military force.
High oil prices have largely contributed to inflation and high gasoline prices in the United States, which have become a source of concern for Trump in the run-up to the midterm elections.
Last week, two Federal Reserve chairs said interest rates will need to rise to curb inflation. Higher interest rates generally slow growth and increase costs for consumers, but help lower inflation.
—Priyanka Salve of CNBC contributed to this report.
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