Two vessels struck by projectiles off Saudi Arabia and Oman

Gulf allies prepare for possible broader U.S. campaign against Iran

Two vessels were struck by unidentified projectiles off Saudi Arabia and Oman on Monday, according to U.K. Maritime Trade Operations. Both crews were reported safe, and no environmental damage was reported. The Wall Street Journal said maritime security risks persisted in the region.

America’s Gulf allies were preparing for the possibility of a broader U.S. military campaign against Iran, The Wall Street Journal reported. Such a campaign could trigger retaliation against economic and civilian infrastructure across the region, the newspaper said.

President Trump had been leaning toward a larger attack after Tuesday’s midterm elections but had not made a final decision, The Wall Street Journal reported.

The United States struck Iran’s Qeshm Island in the Strait of Hormuz on Monday, The Wall Street Journal reported, citing U.S. officials. The attack was the latest in a series of limited strikes Washington had carried out against Iran in recent weeks, even as President Trump had signaled the possibility of a diplomatic agreement.

Oil prices rose Tuesday, recovering some of the previous session’s steep losses as investors weighed fresh U.S. strikes on Iran against continuing diplomatic efforts to end the conflict, The Wall Street Journal reported. Brent crude futures for January delivery rose 1.7% to $106.57 a barrel, while U.S. West Texas Intermediate futures climbed 1.7% to $96.42 a barrel.

The rebound followed Monday’s selloff of more than 7%, when renewed diplomatic discussions raised hopes of an eventual settlement between the United States and Iran.

Oil markets remained cautious because the intermittent diplomatic efforts had not secured peace, according to ANZ analysts. Washington and Tehran had yet to agree on terms for fully reopening the Strait of Hormuz, the analysts said.

Iranian President Masoud Pezeshkian said Monday that the country’s supreme leader had given the government certain powers as it sought to resolve the conflict through dialogue. The state-run news agency IRNA reported the statement.

By Tuesday, the two central questions remained open: whether Trump would launch a larger attack and whether Washington and Tehran could agree on terms for fully reopening the Strait of Hormuz.