Oil Rises Following Iranian Attacks on Ships in the Strait of Hormuz

Oil prices rose early on Tuesday following Iranian attacks on ships moving through the Strait of Hormuz. West Texas Intermediate crude oil for August delivery was last seen up 0.9% to $69.13 per barrel, while September Brent oil was up 1% to $72.68. The rise follows reports that Iran fired on two ships in Omani waters near the Strait of Hormuz. The Wall Street Journal reported that Iran's Revolutionary Guard Corps fired missiles at the vessels, striking an LNG carrier and threatening to reignite fighting that could imperil the ceasefire deal reached last month between the U.S. and Iran. The attacks threaten to keep ships that have been trapped in the Persian Gulf since the Feb. 28 start of the war on Iran from leaving the region. The ceasefire had allowed 27 ships to move through the Strait in the last day, according to hormuzstraitmonitor.com, leaving 340 vessels still waiting to exit the Strait. Still, oil prices have returned to pre-war levels as ships have moved through the Strait since the June 17 ceasefire agreement between the two countries, easing the largest ever supply shock and rebuilding depleted inventories in Asian nations that depend on Persian Gulf supply..