Oil price rises after Iran says it stops ships in Hormuz

Oil prices rose on Friday after Iran said it had stopped two vessels seeking to exit the Strait of Hormuz, underscoring concerns over global energy supplies following a drone attack on ships in a Mediterranean Egyptian port this week.

Iran said four other tankers turned back after its forces intervened, although the Iranian reports could not be independently confirmed.

Two large tankers carrying oil loaded from the Gulf were recorded passing through the strait, a narrow waterway between Iran and Oman that normally carries about one-fifth ⁠of the world’s energy shipments.

Two other commodity vessels also transited, according to shipping data from Kpler, which does not capture vessels that have been transiting the strait with their transponders off.

Iran has blocked most shipping through the Strait of Hormuz since the start of the five-month-old conflict while its Houthi allies in Yemen this month began threatening the Bab el-Mandeb, the strait at the other end of the Red Sea from the Suez Canal, another export route for Saudi crude.

Oil prices rose more than 1% on Friday, with traders citing the Iranian reports, which followed a similar report earlier this week that was not corroborated. Benchmark Brent crude futures were on track to rise 23% in July, and economists and analysts polled by Reuters expect prices to rise further this year.

There were no reports of new US attacks on Iran overnight between Thursday and Friday after what was a sharp escalation in its war on Iran earlier in the week, with joint US-Saudi strikes on Iranian-allied forces in Iraq.