Oil prices rose on Tuesday morning following a report of an Iranian attack on commercial ships in the strategically vital Strait of Hormuz. The waterway, which typically handles around 20% of the world's oil traffic, reaffirms the fragility of the U.S. and Iran's interim peace agreement as they negotiate a permanent end to their war.
International benchmark Brent crude futures for September delivery traded 1.5% higher at $73.09 per barrel, extending earlier gains. U.S. West Texas Intermediate futures for August delivery also advanced 1.5% to $69.56, after closing at its lowest level since February 27.
Iran fired at least two missiles at ships navigating the Strait of Hormuz on Monday evening, Axios reported, citing two unnamed U.S. officials. The vessels suffered significant damage in the attack but no casualties were reported.
The United Kingdom Maritime Trade Operations Centre reported that it had received a report of an incident 8 nautical miles east of Limah, Oman. They stated that a tanker had been struck by an unknown projectile while traveling southbound, resulting in a fire. No casualties were reported in the incident.
Washington and Tehran signed a memorandum of understanding last month to bring their nearly four-month war to an end. Indirect talks concluded last week without any sign of meaningful progress toward a lasting peace agreement.
President Donald Trump said Monday that the two countries would either make a deal or the U.S. would "finish the job," renewing threats of military action against the Islamic Republic.
