Oil futures swung sharply on Tuesday after US forces carried out what officials described as limited defensive strikes on Iranian military targets near the Strait of Hormuz. Prices later retreated, with US crude trading slightly above $96 a barrel and Brent down about 1% to around $103. Exxon Mobil and Chevron shares also extended their declines as uncertainty over the conflict continued to shape energy-market pricing.
US crude ranged from $93.59 to $98.82
By late Tuesday morning, US crude futures were modestly lower, just above $96 a barrel. The December contract had traded between $93.59 and $98.82 earlier in the session, as traders reassessed supply risks following news of the military action. Brent futures were down about 1%, near $103 a barrel.
US officials characterized Monday's action as a limited, defensive strike against Iranian military facilities, describing it as a targeted operation rather than a return to full-scale war. The strikes came a day before the US midterm elections concluded on Tuesday. President Trump had previously said hostilities with Iran could resume after Election Day, leaving markets focused on both the scope of the latest action and the risk of further escalation.
Strait of Hormuz keeps supply risks in focus
The war with Iran is now in its fourth month, while the closure of the Strait of Hormuz continues to draw attention to global oil inventories and supply chains. The waterway is a major route for energy shipments, so changes in military activity or shipping conditions can alter expectations for crude supply.
Recent price swings reflect traders adjusting their risk assessments as developments emerge. Information released so far about Monday's strikes has not indicated that the operation has expanded into a full-scale war.
Exxon Mobil and Chevron extend losses
Energy stocks remained under pressure on Tuesday. Exxon Mobil fell about 1%, after dropping 4% on Monday. Chevron lost about 1%, following a 3.3% decline in the previous session. The companies' shares fell alongside crude prices, as investors weighed not only potential supply disruptions but also the effect of oil-price moves on energy firms.
US crude remained above $96 a barrel on Tuesday, while Brent traded near $103. US officials continued to describe Monday's operation as limited. The Strait of Hormuz and any further military developments remain central to the market's assessment of oil supply risks.