Oil prices rose Tuesday after Iran allegedly launched missiles at two commercial vessels transiting the Strait of Hormuz, escalating tensions in one of the world's most strategically important shipping lanes and casting fresh uncertainty over stalled nuclear negotiations between Washington and Tehran. The reported attack comes just one week after both sides had agreed to halt military activity in the waterway as part of broader efforts to stabilize the region following months of conflict.
Brent crude, the global benchmark, climbed 0.85% to $72.60 per barrel in early U.S. trading, while West Texas Intermediate gained 0.66% to $69.00 per barrel. The price gains reflected renewed concerns that any disruption to shipping through the Strait of Hormuz could threaten global energy supplies and increase geopolitical risk premiums in oil markets.
According to a U.S. official cited in media reports, Iran fired at least two missiles at commercial ships traveling through the strait. Both vessels reportedly sustained significant damage, although no casualties were reported. Iranian authorities had not publicly commented on the reported incident.
The latest escalation interrupted what had been a relatively calmer period in the Gulf after Washington and Tehran reportedly agreed to suspend attacks targeting maritime traffic. That understanding followed the broader ceasefire that ended hostilities triggered by the joint U.S.-Israeli strike on Feb. 28 that killed Ayatollah Ali Khamenei and launched a new phase of regional conflict.
Diplomatic efforts have since slowed as Iran continues national mourning ceremonies for Khamenei. Before negotiations were paused, U.S. and Iranian representatives had resumed indirect discussions over Tehran's nuclear program through mediators in Doha.
Vice President JD Vance offered a cautiously optimistic assessment before the talks were suspended.
"It's still pretty early, but talks are going well," Vance said.
Special envoys Jared Kushner and Steve Witkoff also met with regional mediators in Qatar to continue technical discussions surrounding a possible nuclear agreement.
The reported missile strike comes as another dispute has emerged over Iran's ambitions in the Strait of Hormuz. According to Axios, U.S. officials have been urging Tehran not to impose transit fees on vessels passing through the waterway, arguing that a successful nuclear agreement would provide Iran with greater long-term economic benefits than attempting to monetize global shipping.
Iran, however, has maintained that vessels navigating the strait should coordinate with Iranian authorities and use shipping routes approved by Tehran. While some commercial traffic continues to pass through waters closer to Oman, reports indicate Iranian enforcement efforts have focused primarily on ships using those southern transit routes.
According to reporting by The Wall Street Journal, Iranian officials have been promoting a proposal that would allow Tehran to oversee shipping through the Strait of Hormuz while collecting transit revenue. Iranian officials reportedly estimate such a system could generate approximately $40 billion annually, creating a significant new source of government income following the war.
The report said Tehran has also floated the proposal to neighboring Gulf states, suggesting revenue-sharing arrangements designed to make the initiative more attractive across the region.
