Oil Extends Rally as US-Iran Fighting Threatens Persian Gulf Supply

Oil rose for a second day early Tuesday as renewed fighting between the US and Iran again threatens to keep Persian Gulf supply off the market. West Texas Intermediate crude oil for August delivery was last seen up $1.66, or 2.1%, to $79.80 per barrel, the highest since June 15, while September Brent oil was up $2.67, or 3.2%, to $85.97. Oil is now up 12% in the past two days after Iran and the US renewed fighting on the weekend as they dispute control over the Strait of Hormuz, the chokepoint for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war. Iran attacked three tankers in the Strait and launched strikes against US targets in neighboring countries overnight, the Wall Street Journal reported, while the US carried out five hours of strikes on Iranian targets and re-imposed a blockade of Iranian ports. Iran has again declared the Strait closed, while the US President Trump on Monday said it remains open while announcing plans to impose a 20% toll on shipping through the waterway as a protection fee. The fighting has again kept shipping through the Strait limited, with hormuzstraitmonitor.com reporting just 11 ships have move.