Oil Rises After U.S. Reimposed Naval Blockade on Iran

0744 GMT – Oil prices rise, with Brent crude trading just shy of $86 a barrel after the U.S. reinstated its naval blockade on Iran. “Although Trump withdrew a proposal to impose transit fees on ships using Hormuz, the renewed conflict has pushed oil prices to their highest level in about a month, while broader regional tensions intensified following Houthi attacks on Saudi Arabia,” says Soojin Kim from MUFG. The escalation has undermined confidence in shipping through the Strait of Hormuz despite U.S. assurances that the waterway remains open, reversing what had been a strong recovery in Persian Gulf shipping flows and threatening the rebound in exports from Gulf producers. In early European trading, Brent crude rises 1.2% to $85.78 a barrel, while WTI is up 1.1% to $80.19 a barrel. (giulia.petroni@wsj.com)

Oil Rises Amid Iran’s Attacks on Shipping in Strait of Hormuz

2351 GMT — Oil rises in early Asian trade amid Iran’s attacks on shipping in the Strait of Hormuz, a key waterway through which one-fifth of the world’s oil is transported. Iran’s attacks on three crude oil supertankers overnight are grinding the “shuttle run” tanker operations in the strait to a halt. The barrage of missiles and drones hit ships that specialize in short voyages in and out of the Persian Gulf, known as “shuttle runs.” The recent attacks on ships are making journeys through the strait increasingly risky, say ANZ Research analysts in a research report. Front-month WTI crude oil futures are 0.7% higher at $79.91 a barrel. (ronnie.harui@wsj.com)